In Equilibrium, If $1 = 0

question 71

Multiple Choice

In equilibrium, if $1 = 0.5 pound sterling and 1 pound sterling = 40 Swiss francs, the exchange rate between dollar and franc will be:

• A) 1 franc = $.10
• B) 1 franc = $.20
• C) $1 = 80 francs
• D) $1 = 20 francs

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