Assume the real GDP of Brazil in 2020 was R 6 billion (Real). If the exchange rate was 1 Real = $0.25, calculate the real GDP of Brazil in US dollars in 2020. Group of answer choices $1.5 billion $24 billion $4 billion $2.4 billion

Assume the real GDP of Brazil in 2020 was R 6 billion (Real). If the exchange rate was 1 Real = $0.25, calculate the real GDP of Brazil in US dollars in 2020. Group of answer choices $1.5 billion $24 billion $4 billion $2.4 billion

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter6: Managing In The Global Economy

Section: Chapter Questions

Problem 12E

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Question

Assume the real GDP of Brazil in 2020 was R 6 billion (Real).

If the exchange rate was 1 Real = $0.25, calculate the real GDP of Brazil in US dollars in 2020.

Group of answer choices

$1.5 billion

$24 billion

$4 billion

$2.4 billion

Definition Video Definition Overall monetary value of all the complete or final services and goods that a country can produce within its domestic boundaries in a specific period. Video

Expert Solution

Step 1

Given information

1 real=$0.25

Real GDP of Brazil=R 6 Billion

The exchange rate represents the value of one currency in terms of the other currency.

Real GDP is the GDP that is adjusted for inflation.

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