If the Representative Basket of European Goods and Services Costs

Multiple Choice

If the representative basket of European goods and services costs 40 euros, the representative U.S. basket costs $50, and the dollar/euro exchange rate is $0.90 per euro, then the price of the European basket in terms of U.S. basket is

A) [(0.9 $/euro) (40 euro per a European basket) ]/[(50 $/U.S. basket) ].
B) [(0.9 $/euro) (50 $/U.S. basket) ]/[(40 euro per a European basket) ].
C) [(40 euro per a European basket) ]/[(50 $/U.S. basket) (0.9 $/euro) ].
D) [(50 $/U.S. basket) ].
E) [(0.9 $/euro) (40 euro per a European basket) (50 $ U.S. basket) ].