The Nominal Exchange Rate Is

question 29

Multiple Choice

The nominal exchange rate is .80 euros per dollar and the real exchange rate is 4/3.Which of the following prices for a particular good are consistent with these exchange rates?

• A)$4 in the U.S.and 3 euros in Italy.
• B)$4 in the U.S.and 3.75 euros in Italy.
• C)$5 in the U.S.and 3 euros in Italy.
• D)$6 in the U.S.and 2.50 euros in Italy.

---

Definitions:

Republican Party

One of the two major contemporary political parties in the United States, known for its conservative positions on economic and social policies.

Economic Issues

Problems or challenges related to the economy, including unemployment, inflation, economic growth, and public debt.

Social Issues

Problems that influence and are opposed by a significant number of individuals within a society, often related to moral, social, cultural, and structural factors.

Wave Elections

Electoral cycles characterized by significant shifts in voter preferences, leading to large changes in political representation.