Suppose the Exchange Rate Between the Euro and the U

question 188

Multiple Choice

Suppose the exchange rate between the euro and the U.S.dollar is €0.5 to $1.If a Big Mac costs $3 in the United States and €1.5 in Germany,then the real exchange rate is:

• A) 1:1.
• B) 2:1.
• C) 1:2.
• D) 1:3.

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Definitions:

Merchandise Return

Occurs when a customer returns a product to the seller for a refund or exchange due to dissatisfaction or defects.

Perpetual Inventory System

An inventory management system that tracks the sale and restock of inventory items in real-time.

Merchandise

Products that are purchased, stored, and sold by businesses, typically in the retail industry.

Cash Payment

A transaction in which a payment is made in the form of physical currency or through a digital mechanism but representing immediate transfer of funds.