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    Principles of Macroeconomics Study Set 8
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    Exam 18: Open Economy Macroeconomics Basic Concepts: The Prices for International Transactions Real and Nominal Exchange Rates
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    If a USDollar Purchases 4 Argentinean Pesos,and a Gallon of Milk Costs
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If a USDollar Purchases 4 Argentinean Pesos,and a Gallon of Milk Costs

Question 19

Question 19

Multiple Choice

If a U.S.dollar purchases 4 Argentinean pesos,and a gallon of milk costs $3 in the U.S.and 6 pesos in Argentina what is the real exchange rate?


A) 2
B) 3/2
C) 2/3
D) 1/2

Correct Answer:

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