Multiple Choice
Suppose that the United States and the United Kingdom return to the gold standard. The United States sets the price of gold equal to $500 per ounce, and the United Kingdom sets the price of gold at £200 per ounce. What is the $-£ exchange rate?
A) $0.40 = £1
B) $2.50 = £1
C) $500 = 1 ounce
D) £200 = 1 ounce
Correct Answer:
Verified
Correct Answer:
Verified
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