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Find the Real Exchange Rate for the Following Case: Assume

Question 25

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Find the real exchange rate for the following case: Assume that the representative basket of European goods costs 100 euros and the representative U.S. basket costs $125, and the dollar/euro exchange rate is $0.75 per euro, then the price of the European basket in terms of U.S. basket is:

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[(0.75 $/euro) (100 euro per a...

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