The Price of a Basket of Goods and Services in the U.S.is

question 237

Multiple Choice

The price of a basket of goods and services in the U.S.is $600.In Canada the same basket of goods costs 700 Canadian dollars.If the nominal exchange rate is 1.2 Canadian dollars per U.S.dollar,what is the real exchange rate?

• A) 700/600
• B) 600/700
• C) 700/720
• D) None of the above is correct.

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Definitions:

U.S.S. Maine

An American naval ship that sank in Havana Harbor in February 1898, leading to the Spanish-American War due to suspicions of Spanish foul play.

Women's Clubs

Organizations and groups formed largely by women, aiming to promote social reforms, education, and community development.

Temperance Associations

Organizations dedicated to promoting moderation or the complete abstinence from alcoholic beverages.

Social Reform

Efforts aimed at making structural changes to society in order to correct injustices and inequalities, often involving legislative, social, or economic changes.