If an American car in Japan costs 2,000,000 yen and a Japanese car in the U.S....

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If an American car in Japan costs 2,000,000 yen and a Japanese car in the U.S. costs $25,000, and a dollar can buy 94 yen, what is the nominal exchange rate (in terms of dollars per yen, to the nearest thousandth)? What is the real exchange rate (in terms of American Cars per Japanese car, to the nearest hundredth)? If an American car in Japan costs 2,000,000 yen and a Japanese car in the U.S. costs $25,000, and a dollar can buy 94 yen, what is the nominal exchange rate (in terms of dollars per yen, to the nearest thousandth)? What is the real exchange rate (in terms of American Cars per Japanese car, to the nearest hundredth)?

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Nominal exchange rate dollars per yen P... View the full answer