Suppose the real exchange rate is 1 litre of Canadian gasoline per 2 litres of U.S. gasoline,
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Suppose the real exchange rate is 1 litre of Canadian gasoline per 2 litres of U.S. gasoline, 1 litre of U.S. gasoline costs $0.50 U.S., and a litre of Canadian gas costs $1.30 Canadian. What is the nominal exchange rate?
Related Book For
Money Banking and Financial Markets
ISBN: 978-0078021749
4th edition
Authors: Stephen Cecchetti, Kermit Schoenholtz
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