Use the information provided below to answer the following question(s) .
The exchange rate between the British pound and the U.S. dollar is 2. In England, the price level is 1.0 and the one-year interest rate is 20%. In the United States, the price level is .8 and the one-year interest rate is 8%. The inflation rate in both countries is zero.
-Refer to the information above.The real exchange rate (from the United States' perspective) is
A) 0.625.
B) 0.8.
C) 1.6.
D) 2.0.
E) none of the above
Correct Answer:
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Q7: Use the information provided below to answer
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Q13: If the exchange rate between two countries
Q14: A country which does not devalue when
Q15: An increase in the domestic one-year interest
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