Suppose That the Nominal Exchange Rate Between the Dollar and the English

question 97

Multiple Choice

Suppose that the nominal exchange rate between the dollar and the English pound was 1 pound per $2 and that the English price level was twice that of the United States,then the real exchange rate is

• A)1 pound/$1.
• B)2 pounds/$1.
• C)1 pound/$2.
• D)1 pound/$4.

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Definitions:

Determined

Having a strong motivation or determination to achieve a specific outcome or goal.

Pierre-Simon de Laplace

A French mathematician and astronomer known for his work in celestial mechanics and the formulation of Laplace's equation.

Determinism

The philosophical theory that all events, including moral choices, are completely determined by previously existing causes.

Determinism

The doctrine that all events, including moral choices, are determined by previously existing causes.