In Ireland, a pint of beer costs 2.2 Irish pounds. In Australia, a point of beer costs 4 Australian dollars. If the nominal exchange rate is 2 Australian dollars per Irish pound, what is the real exchange rate from the Irish perspective? O 0.91 O 1.1 O 3.64 4.4
In Ireland, a pint of beer costs 2.2 Irish pounds. In Australia, a point of beer costs 4 Australian dollars. If the nominal exchange rate is 2 Australian dollars per Irish pound, what is the real exchange rate from the Irish perspective? O 0.91 O 1.1 O 3.64 4.4
Brief Principles of Macroeconomics (MindTap Course List)
8th Edition
ISBN:9781337091985
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter13: Open-economy Macroeconomics: Basic Concepts
Section: Chapter Questions
Problem 7PA
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![In Ireland, a pint of beer costs 2.2 Irish pounds. In Australia, a point of beer costs 4 Australian dollars.
If the nominal exchange rate is 2 Australian dollars per Irish pound, what is the real exchange rate
from the Irish perspective?
O 0.91
O 1.1
3.64
O 4.4](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F439e38b0-ee6b-4bf4-ae0a-b4643589734d%2F3eb5f6d0-b806-4c8d-8678-74a32c17540c%2F70f61xl_processed.jpeg&w=3840&q=75)
Transcribed Image Text:In Ireland, a pint of beer costs 2.2 Irish pounds. In Australia, a point of beer costs 4 Australian dollars.
If the nominal exchange rate is 2 Australian dollars per Irish pound, what is the real exchange rate
from the Irish perspective?
O 0.91
O 1.1
3.64
O 4.4
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