If the Price Level in Canada Is 110, the Price

question 241

Multiple Choice

If the price level in Canada is 110, the price level is 135 in Mexico, and the nominal exchange rate is 12.5 pesos per Canadian dollar, what is the real exchange rate from the Canadian perspective?

• A)8.8
• B)10.2
• C)10.8
• D)11.4
• E)15.3

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