Multiple Choice
Suppose that Northern Ireland and Southern Ireland each have 1,000 hours of labor per day. Southern workers are paid €1 per day and Northern workers are paid £1 per day. What is the exchange rate associated with an international price of one keg of beer = 1 bottle of whiskey?
A) €1.25 = £1
B) €0.80 = £1
C) €1 = £1
D) None of the above
Correct Answer:
Verified
Correct Answer:
Verified
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