Suppose the Real Exchange Rate Is

question 333

Multiple Choice

Suppose the real exchange rate is .80 pounds of bananas in Guatemala per pound of bananas in the U.S. If a pound of bananas in the U.S. costs $.50, and the exchange rate is 8 Guatemalan Quetzals per dollar, what is the price of bananas in Guatemala?

• A)3.20 Quetzals per pound
• B)4.00 Quetzals per pound
• C)5.00 Quetzals per pound
• D)6.40 Quetzals per pound

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Definitions:

Rapid-Fire Decisions

Quick decision-making processes, often made with little deliberation.

Type A Behavior

A personality pattern characterized by high levels of competitiveness, self-imposed stress, impatience, and aggression.

Cynical Hostility

A negative attitude towards others, characterized by mistrust, cynicism, and a belief that others are motivated by selfishness.

Locus Of Control

A psychological concept referring to the extent to which individuals believe they have control over the events that affect their lives.