Suppose That a Kilogram Can of Coffee Costs About $16

question 54

Multiple Choice

Suppose that a kilogram can of coffee costs about $16 in Canada. Suppose the exchange rate is 0.7 euro per dollar and that a kilogram can of coffee in Belgium costs about 5.6 euros. What is the real exchange rate?

• A) 3/4 cans of Belgian coffee per can of Canadian coffee
• B) 2 cans of Belgian coffee per can of Canadian coffee
• C) 2.45 cans of Belgian coffee per can of Canadian coffee
• D) 3.5 cans of Belgian coffee per can of Canadian coffee

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