If the real exchange rate is 2.0, the price level of domestic goods is 120, and the dollar price of foreign exchange is 0.4, what is the price level of foreign goods? Select one: a. 600 b. 50 c. 100 d. 200 e. 400 O o o O

If the real exchange rate is 2.0, the price level of domestic goods is 120, and the dollar price of foreign exchange is 0.4, what is the price level of foreign goods? Select one: a. 600 b. 50 c. 100 d. 200 e. 400 O o o O

Principles of Macroeconomics (MindTap Course List)

7th Edition

ISBN:9781285165912

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter18: Open-Economy Macroeconomics: Basic Concepts

Section: Chapter Questions

Problem 3QCMC

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Question

If the real exchange rate is 2.0, the price level of domestic goods is 120, and the dollar price of foreign exchange is 0.4, what is the price level of
foreign goods?
Select one:
a. 600
b. 50
c. 100
d. 200
e. 400

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