Suppose That the Nominal Exchange Rate Between the Dollar and the English

question 97

Multiple Choice

Suppose that the nominal exchange rate between the dollar and the English pound was 1 pound per $2 and that the English price level was twice that of the United States,then the real exchange rate is

• A)1 pound/$1.
• B)2 pounds/$1.
• C)1 pound/$2.
• D)1 pound/$4.

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Definitions:

Industrialization

The process by which an economy is transformed from primarily agricultural to one based on the manufacturing of goods, leading to technological innovation and changes in society.

Credential Inflation

refers to the growing demand for higher educational qualifications for jobs that previously required less formal education, leading to an escalation in the educational requirements for employment.

Technical Requirements

Specifications or criteria defined by developers or stakeholders that outline the technical needs a project or product must meet.

Professionalization

The process of developing or elevating an occupation to a higher status by establishing formal criteria, standards, and ethics.