If the Current Exchange Rate Is 1€/1$U

question 6

Multiple Choice

If the current exchange rate is 1€/1$U.S.and bagels cost 1€ in France and 1$ in the U.S.and the current exchange rate for bagels is 0.74 European bagel/1U.S.bagel and if the bagels are identical:

• A)The nominal exchange rate is 0.74€/$
• B)This is a good example of the Theory of Purchasing Power of Parity working as it should
• C)The real exchange rate equals the nominal exchange rate
• D)The real exchange rate is 0.74 French bagel/1U.S.bagel

---

Definitions:

Autism

A developmental disorder characterized by difficulties in social interaction and communication, and by restricted or repetitive patterns of thought and behavior.

Sample

A subset of individuals or elements taken from a larger population, used in research to make inferences or draw conclusions about the whole.

Random Sample

A method of selecting a sample from a population in such a way that every individual has an equal probability of being chosen, ensuring the sample’s representativeness of the whole population.

Population

A group of individuals of the same species living and interbreeding within a given area.