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    International Economics Study Set 9
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    Exam 18: Balance of Payments II: Output, Exchange Rates, and Macroeconomic Policies in the Short Run
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    If a Basket of Goods Costs $100 in the United
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If a Basket of Goods Costs $100 in the United

Question 110

Question 110

Multiple Choice

If a basket of goods costs $100 in the United States and 300 pesos in Mexico, and if the exchange rate is $1 = 5 pesos, then the dollar price of the basket of goods in Mexico is:


A) $250.
B) $56.
C) $60.
D) $75.

Correct Answer:

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