Answered: The exchange rate between AUD and USD…

The exchange rate between AUD and USD is AUD$1 = USD$0.67. The exchange rate between Mexican Peso and USD is MXN$1=USD$0.05. Calculate the nominal exchange rate between AUD and Mexican Peso

Principles of Economics (MindTap Course List)

8th Edition

ISBN:9781305585126

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter31: Open-Economy Macroeconomics: Basic Concepts

Section31.2: The Price For International transaction: Real And Nominal Exchange Rate

Problem 2QQ

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The exchange rate between AUD and USD is AUD$1 = USD$0.67.
The exchange rate between Mexican Peso and USD is
MXN$1=USD$0.05. Calculate the nominal exchange rate between
AUD and Mexican Peso
O AUD$1 MXN$24.9
=
AUD$1 MXN$0.07
O AUD$1 MXN$0.04
O AUD$1 MXN$13.4

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