If the real exchange rate for coal is 1.5, the price of coal in the United States is $50 per ton, and the price of coal in Britain is 20 British pounds per ton, what is the nominal exchange rate?
A)15/4 or 3.75 pounds per dollar
B)5/3 or 1.67 pounds per dollar
C)3/5 or 0.6 pounds per dollar
D)4/15 or 2.67 pounds per dollar

Question

Quizplus · Accepted Answer

The Answer of If the real exchange rate for coal is 1.5, the price of coal in the United States is $50 per ton, and the price of coal in Britain is 20 British pounds per ton, what is the nominal exchange rate?
A)15/4 or 3.75 pounds per dollar
B)5/3 or 1.67 pounds per dollar
C)3/5 or 0.6 pounds per dollar
D)4/15 or 2.67 pounds per dollar

If the Real Exchange Rate for Coal Is 1