The Next Questions Refer to the Following

question 37

Multiple Choice

The next questions refer to the following.
Suppose the nominal Canadian - US exchange rate is C$1 = US$0.65 (so that one Canadian dollar buys 65 US cents) , and the Canadian price level is twice as high as the US price level.
-The real value of C$1 in the US is then

• A) US$0.65
• B) US$0.77
• C) US$1.30
• D) US$1.40
• E) US$1.54

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