If the Price Level in the UK Is 8

question 41

Multiple Choice

If the price level in the UK is 8.0, the price level in Australia is 6.0, and it costs 0.65 pound to buy one Australian dollar, then the real exchange rate between Australia and the UK (the price of Australian goods in terms of British goods) is:

• A) 1.49.
• B) 0.49.
• C) 1.19.
• D) 0.79.
• E) 0.29.

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Definitions:

Delivery Vehicle

A category of fixed assets that refers to transportation equipment used by a business for the purpose of delivering goods or services.

Book Value

The net value of a company's assets found on its balance sheet, calculated as total assets minus intangible assets and liabilities.

Sale

A sale involves the transaction of goods or services from seller to buyer in exchange for money or other compensation.

Asset

An asset held or managed by a person, business, or nation, anticipated to yield future advantages.