Suppose the Cost of a Typical Basket of Goods Is

question 111

Multiple Choice

Suppose the cost of a typical basket of goods is 100dollar in the United States and 800 pesos in Mexico. If the nominal exchange rate is 25 pesos per dollar, what is the real exchange rate?

• A) 0.33
• B) 1.33
• C) 1.50
• D) 3.13

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Definitions:

July Days

A period in July 1917 in Russia, marked by spontaneous and armed demonstrations by soldiers, sailors, and industrial workers against the Provisional Government, which were ultimately suppressed.

Bolsheviks

A faction of the Russian socialist movement that led the October Revolution in 1917, establishing the Soviet regime.

Kerensky

Alexander Kerensky was a key political figure in the Russian Provisional Government before the Bolshevik Revolution of 1917.

Red Guards

Paramilitary volunteer formations that emerged during the Russian Revolution of 1917, composed mainly of workers and peasants, supporting Bolshevik forces and involved in key revolutionary activities.