Suppose That a Bushel of Wheat Costs $5 in Canada

question 119

Multiple Choice

Suppose that a bushel of wheat costs $5 in Canada and costs 40 pesos in Mexico. If the nominal exchange rate is 20 pesos per dollar, what is the real exchange rate?

• A) .04
• B) 2
• C) 2.5
• D) 8

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Definitions:

Socially Approved

Actions or behaviors that are accepted and encouraged by the majority within a society or social group.

Historical Aberration

An event, trend, or phenomenon that significantly deviates from what is considered normal or expected in historical context.

Nuclear Family

A family unit consisting of two parents and their children, considered the traditional core of a familial structure.

Divorce Rate

The divorce rate is a statistical measure that represents the number of divorces occurring in a given population during a specified period, often expressed per 1,000 individuals.