Suppose the Real Exchange Rate Is 1 Litre of Canadian

question 60

Multiple Choice

Suppose the real exchange rate is 1 litre of Canadian gasoline per 2 litres of U.S.gasoline,1 litre of U.S.gasoline costs $0.45 U.S.,and a litre of Canadian gas costs $1.30 Canadian.What is the nominal exchange rate?

• A) 0.38 U.S.dollars per Canadian dollar
• B) 0.45 U.S.dollars per Canadian dollar
• C) 0.69 U.S.dollars per Canadian dollar
• D) 1.30 U.S.dollars per Canadian dollar

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Definitions:

Undisclosed Principal

A situation in a contract where the existence and identity of one party are not revealed to the other party.

Liability

Legal responsibility for one's actions or omissions, which may result in being obligated to offer compensation for harm caused.

Incompetent

Lacking the necessary ability, knowledge, or fitness to perform a legally designated responsibility or action effectively.

Undisclosed Principal

An undisclosed principal is a party in a contractual agreement who remains unknown to the other party or parties involved.