3) Suppose that an Apple iPhone costs $400 in the United States, £130 in the United Kingdom, and ¥70,000 in Japan. If the exchange rates are $1.50 = £1 and ¥100 = $1, what are the real exchange rates between the dollar and the yen and the dollar and the pound?

3) Suppose that an Apple iPhone costs $400 in the United States, £130 in the United Kingdom, and ¥70,000 in Japan. If the exchange rates are $1.50 = £1 and ¥100 = $1, what are the real exchange rates between the dollar and the yen and the dollar and the pound?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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3) Suppose that an Apple iPhone costs $400 in the United States, £130 in the United
Kingdom, and ¥70,000 in Japan. If the exchange rates are $1.50 = £1 and ¥100 =
$1, what are the real exchange rates between the dollar and the yen and the
dollar and the pound?

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