Multiple Choice
When the price of a good in the United States is $2, while in Spain it is €2, and the nominal exchange rate is E$/€ = 1.5, what is the relative price of the good in Spain versus the United States?
A) 1
B) 1.5
C) 2/3
D) 1/2
Correct Answer:
Verified
Correct Answer:
Verified
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