In Equilibrium, If $1 =

question 7

Multiple Choice

In equilibrium, if $1 = .5 pounds sterling and 1 pound sterling = 40 Swiss francs, the exchange rate between dollars and Swiss francs will be:

• A)1 Swiss franc = $.10.
• B)1 Swiss franc = $.20.
• C)$1 = 80 Swiss francs.
• D)$1 = 20 Swiss francs.

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Definitions:

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