Suppose the Real Exchange Rate Is 1 Litre of Canadian

question 174

Multiple Choice

Suppose the real exchange rate is 1 litre of Canadian gasoline per 2 litres of U.S. gasoline, 1 litre of U.S. gasoline costs $0.50 U.S., and a litre of Canadian gas costs $1.20 Canadian. What is the nominal exchange rate?

• A) 0.21 U.S. dollars per Canadian dollar
• B) 0.42 U.S. dollars per Canadian dollar
• C) 0.83 U.S. dollars per Canadian dollar
• D) 1.20 U.S. dollars per Canadian dollar

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Definitions:

Socialization Process

The method by which individuals learn and adopt the norms, values, behaviors, and social skills appropriate to their social positions.

Sense of Trust

The belief in the reliability, truth, ability, or strength of someone or something.

Dilating Pupils

The process of pupils expanding or enlarging, often in response to light levels, emotional states, or interest.

Constricting Pupils

The process where the pupils of the eyes become smaller, often in response to bright light or focusing on close objects.