The Nominal Exchange Rate Is 2 Barbados Dollars Per U

question 12

Multiple Choice

The nominal exchange rate is 2 Barbados dollars per U.S.dollar.If the price of a good in Barbados is 3 Barbados dollars and the price in the U.S.is 2 U.S.dollars,what is the real exchange rate to the nearest 100th?

• A)3 Barbados goods per U.S.good
• B)1.33 Barbados goods per U.S.good
• C).75 Barbados goods per U.S.good
• D)none of the above is correct

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Definitions:

Productivity

The measure of the efficiency of production, often quantified as the ratio of output to input in the production process.

Productivity

Productivity measures the efficiency of production, often quantified as the ratio of output to inputs in the production process across a specific period.

Output

The quantity of goods or services produced in a given time period by a company, industry, or country.

Input

Essential elements or factors that are put into a system or process to achieve an output or result, similar to resources used in production.