The Price of a Basket of Goods and Services in the U.S.is

Multiple Choice

The price of a basket of goods and services in the U.S.is $600.In Canada the same basket of goods costs 700 Canadian dollars.If the nominal exchange rate is 1.2 Canadian dollars per U.S.dollar,what is the real exchange rate?

A) 700/600
B) 600/700
C) 700/720
D) None of the above is correct.