If the price of a good in the U.S.is $10 and the unit of foreign currency is the dinar,in which case is the real exchange rate 5/4?
A) the foreign price is 4 dinars and the exchange rate is 1/2 dinars per dollar
B) the foreign price is 5 dinars and the exchange rate is 2.5 dinars per dollar
C) the foreign price is 4 dinars and the exchange rate is 2 dinars per dollar
D) the foreign price is 5 dinars and the exchange rate is 2/5 dinars per dollar
Correct Answer:
Verified
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