Use the Following Information to Answer the Question(s) Below

question 32

Multiple Choice

Use the following information to answer the question(s) below:
The exchange rate between the Australian dollar and the British pound is 0.65 (i.e., 0.65 pounds per Australian dollar) . In the U.K., the price level is 1.0 and the interest rate is 15%. In Australia, the price level is 0.5 and the interest rate is 10%. The inflation rate in both countries is zero.
-Refer to the information above. The price of Australian goods measured in pounds is:

• A) 0.325 U.K. goods.
• B) 0.125 U.K. goods.
• C) 0.425 U.K. goods.
• D) 0.525 U.K. goods.
• E) 0.225 U.K. goods.

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Definitions:

Fenestrated

Having a window or opening.

Hemostat

A type of forceps.

Contamination

The presence of an unwanted substance or microorganism in a material, environment, or product, posing risk or harm.