If the Cost of a Typical Basket of Goods in the U.S.is

question 1

Multiple Choice

If the cost of a typical basket of goods in the U.S.is $100 and in Germany it is 200 euros,and the nominal exchange rate is .7 euro per dollar,what is the real exchange rate?

• A)0.35.
• B)0.50.
• C)3.50.
• D)1.50.

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Definitions:

Partnership Business

An officially recognized form of enterprise undertaken by two or more participants, who equally manage the business and its profits.

Agent

A person authorized to act on behalf of another, often in business transactions.

Employee

An individual who provides labor or services to another person or business in exchange for compensation under agreed terms.

Vicariously Liable

A legal principle where one party is held responsible for the actions or omissions of another party, often used in employer-employee relations.