Suppose the Real Exchange Rate Is 1

question 15

Multiple Choice

Suppose the real exchange rate is 1.25 pounds of bananas in Guatemala per pound of bananas in the U.S.If a pound of bananas in the U.S.costs $.50,and the exchange rate is 10 Guatemalan Quetzals per dollar,what is the price of bananas in Guatemala?

• A)2.50 Quetzals per pound
• B)4.00 Quetzals per pound
• C)5.75 Quetzals per pound
• D)6.25 Quetzals per pound

---

Definitions:

Practical Intelligence

The ability to solve everyday problems by utilizing knowledge gained from experience, rather than through formal academic instruction.

Robert Sternberg

An American psychologist known for his work on intelligence, creativity, wisdom, and love.

New Job

Beginning employment in a new position or organization, often bringing changes in routine, responsibilities, and social interactions.

Multiple Intelligences

A theory proposing that people possess different kinds of intelligences, not just traditional IQ.