The table given below reports the inflation rate in the U.S.and Canada for two years. Table 8.1
Refer to Table 8.1.Assume that the exchange rate is fixed at 1.4 CAD = $1 and that price changes for salmon are identical to the inflation rate in each country.If U.S.importers pay 10, 000 CAD for a trailer of Canadian salmon in year 1, what is the approximate price of that salmon in year 2, given that exchange rates do not change?
A)$10, 360
B)$14, 504
C)$7, 400
D)$7, 143
E)$10, 000

Question

The table given below reports the inflation rate in the U.S.and Canada for two years. Table 8.1
 Refer to Table 8.1.Assume that the exchange rate is fixed at 1.4 CAD = $1 and that price changes for salmon are identical to the inflation rate in each country.If U.S.importers pay 10, 000 CAD for a trailer of Canadian salmon in year 1, what is the approximate price of that salmon in year 2, given that exchange rates do not change?
A)$10, 360 
B)$14, 504 
C)$7, 400 
D)$7, 143 
E)$10, 000

Quizplus · Accepted Answer

The Answer of The table given below reports the inflation rate in the U.S.and Canada for two years. Table 8.1
 Refer to Table 8.1.Assume that the exchange rate is fixed at 1.4 CAD = $1 and that price changes for salmon are identical to the inflation rate in each country.If U.S.importers pay 10, 000 CAD for a trailer of Canadian salmon in year 1, what is the approximate price of that salmon in year 2, given that exchange rates do not change?
A)$10, 360 
B)$14, 504 
C)$7, 400 
D)$7, 143 
E)$10, 000

The Table Given Below Reports the Inflation Rate in the U.S.and