Suppose the Real Exchange Rate Is 5/4 of a Canadian

question 2

Multiple Choice

Suppose the real exchange rate is 5/4 of a Canadian textbook per U.S.textbook ,a U.S.textbook costs $150,and a Canadian one costs 120 Canadian dollars.To the nearest penny,what is the nominal exchange rate?

• A).64 Canadian dollars per U.S.dollar
• B)1 Canadian dollar per U.S.dollar
• C)1.56 Canadian dollars per U.S.dollar
• D)None of the above is correct.

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Definitions:

Marginal Costs

The hike in total expenditure resulting from the production of an incremental unit of a product or service.

Marginal Benefits

The incremental enjoyment or usefulness received from consuming or manufacturing another unit of a commodity or service.

Public Good

Products or services accessible to all people within society at no expense, made possible by the government or by private groups or individuals, not for the purpose of financial gain.

Bike Paths

Designated routes or tracks exclusively for bicycles, providing a safe space for cyclists away from motor vehicle traffic.