When the Price of a Good in the United States

question 4

Multiple Choice

When the price of a good in the United States is $2, while in Spain it is €2, and the nominal exchange rate is E_$/€ = 1.5, what is the relative price of the good in Spain versus the United States?

• A) 1
• B) 1.5
• C) 2/3
• D) 1/2

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Definitions:

Group Development Process

A sequence of stages that a group goes through from formation to maturity, including forming, storming, norming, performing, and adjourning.

Cement

A binding material, often used in construction, made by grinding calcined limestone and clay to a fine powder which hardens when mixed with water.

Quarries

Open-pit mining operations where stone, limestone, marble, or other materials are excavated for building and decorative uses.

Mudcracks

Cracks in clay-rich soil or sediment that occur as it dries, typically indicating past water presence.