If the Price Level in the U

question 46

Multiple Choice

If the price level in the U.S. is 120, the price level in South Africa is 140, and the nominal exchange rate is 7 South African rands per dollar, then the real exchange rate is

• A) 8.4 South African goods per U.S. good.
• B) 1.4 South African goods per U.S. good.
• C) 6 South African goods per U.S. good.
• D) 9.8 South African goods per U.S. good.

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Definitions:

Cyclopentanone

A five-membered cyclic ketone, characterized by a ring structure containing one ketone group, used as a precursor in the synthesis of fragrances and pharmaceuticals.

Hydrate

A compound typically formed by the absorption of water molecules into its structure, often resulting in a crystalline form.

PhCOCl

PhCOCl refers to benzoyl chloride, a colorless, fuming liquid with a pungent smell, used in organic synthesis, represented by the formula C6H5COCl.

Carbonyl Group

A functional group consisting of a carbon atom double-bonded to an oxygen atom (C=O) found in aldehydes, ketones, carboxylic acids, and esters.