Question $13(1$ point$)$

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Suppose that one US Dollar exchanges for $10$ Norwegian Kroner. Further, suppose that a representative basket of goods and services costs $2,000$ Dollars in the US and $25,000$ Kroner in Norway. This means that the Real Exchange Rate $($RER$)$ is $...$

One, as implied by Absolute PPP$.$

$1\mathrm{.}25$ Norwegian baskets per US basket.

an Norwegian baskets per US basket.

$10$ Norwegian Kroner per US Dollar.