Multiple Choice
Suppose the real exchange rate is .80 pounds of bananas in Guatemala per pound of bananas in the U.S. If a pound of bananas in the U.S. costs $.50, and the exchange rate is 8 Guatemalan Quetzals per dollar, what is the price of bananas in Guatemala?
A) 3.20 Quetzals per pound
B) 4.00 Quetzals per pound
C) 5.00 Quetzals per pound
D) 6.40 Quetzals per pound
Correct Answer:
Verified
Correct Answer:
Verified
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