If It Took as Many Dollars to Buy Goods in the United

question 76

Multiple Choice

If it took as many dollars to buy goods in the United States as it did to buy enough currency to buy the same goods in India,the real exchange rate would be computed as how many Indian goods per U.S.goods?

• A)one
• B)the number of dollars needed to buy U.S.goods divided by the number of rupees needed to buy Indian goods
• C)the number of rupees needed to buy Indian goods divided by the number of dollars needed to buy U.S.goods
• D)None of the above is correct.

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Definitions:

Reflective Thinkers

Individuals who critically analyze their beliefs and experiences to gain deeper understanding.

Certainty

The state of being sure or confident about something, often without doubt or question.

Valid

Holding logic or fact; sound; legally binding.

Prereflective

Pertaining to cognitive processes or reactions that occur without conscious reflection or deliberation.