If the exchange rate is 2 Brazilian reals per dollar and a meal in Rio costs 20 reals,then how many dollars does it take to buy a meal in Rio?
A)40 and your purchase will increase Brazil's net exports.
B)10 and your purchase will increase Brazil's net exports.
C)40 and your purchase will decrease Brazil's net exports.
D)10 and your purchase will decrease Brazil's net exports.

Question

Quizplus · Accepted Answer

Since the exchange rate is 2 Brazilian reals per dollar, we can divide the cost of the meal in Rio by the exchange rate to find out how many dollars it takes to buy the meal:

20 reals / 2 reals per dollar = 10 dollars

Therefore, the answer is B, and purchasing a meal in Rio for 10 dollars will increase Brazil's net exports.

If the Exchange Rate Is 2 Brazilian Reals Per Dollar