If 5 Swiss Francs Trade for $1, the U

question 22

Multiple Choice

If 5 Swiss francs trade for $1, the U.S. price level equals $1 per good, and the Swiss price level equals 2 francs per good, then the real exchange rate between Swiss goods and U.S. goods is Swiss good(s) per U.S. good.

• A)0.5
• B)2.5
• C)5
• D)10

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