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If the Nominal Exchange Rate Between the Canadian Dollar and the American

Question 18

Multiple Choice

If the nominal exchange rate between the Canadian dollar and the American dollar is 0.89 Canadian dollars per American dollar, how many American dollars are required to buy a product that costs 2.5 Canadian dollars?


A) $1.32
B) $2.23
C) 2.5
D) $2.75
E) $2.81

Correct Answer:

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