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Suppose That a Bushel of Wheat Costs $5 in Canada

Question 43

Multiple Choice

Suppose that a bushel of wheat costs $5 in Canada and costs 50 pesos in Mexico.If the nominal exchange rate is 30 pesos per dollar,what is the real exchange rate?


A) 1 / 3
B) 1
C) 3
D) 10

Correct Answer:

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