If the Price of a Good in the U

question 5

Multiple Choice

If the price of a good in the U.S.is $10 and the unit of foreign currency is the dinar,in which case is the real exchange rate 5/4?

• A)the foreign price is 4 dinars and the exchange rate is 1/2 dinars per dollar
• B)the foreign price is 5 dinars and the exchange rate is 2.5 dinars per dollar
• C)the foreign price is 4 dinars and the exchange rate is 2 dinars per dollar
• D)the foreign price is 5 dinars and the exchange rate is 2/5 dinars per dollar

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Definitions:

Discouraged Worker

An individual who is not actively seeking employment due to believing that no work is available for them, leading to their exclusion from the labor force in unemployment statistics.

Bureau Of Labor Statistics

A U.S. government agency that collects and analyses economic data to report on labor market activity, working conditions, and price changes.

Discouraged Workers

Individuals who are not actively seeking employment due to a belief that no jobs are available for them.

CPI

The Consumer Price Index is a metric that calculates the average cost of a selection of consumer items and services, including food, transportation, and healthcare, by looking at their weighted average prices.