In the USA Digital Camera Costs $200

question 40

Multiple Choice

In the U.S.a digital camera costs $200.The same camera in London sells for 90 pounds.If the exchange rate were .50 pounds per dollar,then which of the following would be correct?

• A)The real exchange rate is greater than 1.A person in London with $200 could exchange them for pounds and have more than enough to buy the camera there.
• B)The real exchange rate is greater than 1.A person in London with $200 could exchange them for pounds but then wouldn't have enough to buy the camera there.
• C)The real exchange rate is less than 1.A person in London with $200 could exchange them for pounds and have more than enough to buy the camera there.
• D)The real exchange rate is less than 1.A person in London with $200 could exchange them for pounds but then wouldn't have enough to buy the camera.

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