If Goods in Canada Cost the Same Number of Dollars

question 85

Multiple Choice

If goods in Canada cost the same number of dollars as German goods cost in euros, the real exchange rate would be computed as how many German goods per Canadian goods?

• A) one
• B) the price of the Canadian goods
• C) the amount of German currency that can be bought with one unit of Canadian currency
• D) the amount of Canadian currency that can be bought with one unit of German currency

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Definitions:

Individual Choices

Decisions made by individuals based on their preferences and circumstances, affecting their personal welfare and the allocation of resources.

Incentives

Financial or non-financial rewards designed to encourage specific behaviors or actions from individuals or entities.

Opportunities

Opportunities refer to favorable situations or conditions that could lead to the achievement of goals or the advancement in a certain area, often requiring timely and strategic action to capture.

Equity

Fairness or justice in the way people are treated within the economy, often in terms of the distribution of wealth.