Suppose That Australia's Price Level Is 200,the British Price Level

Question 82
Multiple Choice

Suppose that Australia's price level is 200,the British price level is 100,and the nominal exchange rate of pounds to the dollar is £0.40 = $1,then the real exchange rate of pounds to the dollar is ________. A) 1.60 B) 0.80 C) 0.50 D) 020