What is real exchange rate expressed in terms of cars

Assignment Help Business Economics

Reference no: EM131173954

A car costs $30,000 in the US. The same car costs 12,000 pounds in Britain. The exchange rate is $1 = 0.5 pounds. 22.1. Refer to the scenario. What is the real exchange rate expressed in terms of cars?

A. 1 US car is equivalent to 1.25 British cars. B. 1 US car is equivalent to 0.8 of a British car. C. 1 US car is equivalent to 2.5 British cars. D. 1 US car is equivalent to 0.5 of a British car.

Reference no: EM131173954

Questions Cloud

Discuss strategic alliance : Discuss strategic alliances. How successful are they? Why do firms form strategic alliances? Compare and contrast licensing agreements and franchising agreements. Imagine that you are meeting with your superiors to discuss entering a foreign market. ..

What effect would a million-dollar bank robbery : What effect would a million-dollar bank robbery have on the nation's money supply? Be thorough; think about not just the components of the money supply, but also the role that banks play in the monetary system

Differences in the opportunity costs of production : According to the HO theory, the basis for the movement of goods and services (international trade) across national boundaries is the differences in the opportunity costs of production (which translates into differences in the prices of goods and serv..

About the opportunity cost of holding money : Which of the following is true about the opportunity cost of holding money? Economists have found that

What is real exchange rate expressed in terms of cars : A car costs $30,000 in the US. The same car costs 12,000 pounds in Britain. The exchange rate is $1 = 0.5 pounds. 22.1. Refer to the scenario. What is the real exchange rate expressed in terms of cars?

Aggregate demand can be defined : Aggregate demand can be defined as:

Each anti-trade argument with its counter argument : When we depend on imports to provide necessary products (food, oil etc.) we make ourselves vulnerable to the will of other countries. If they decided to stop selling to us then our economy or society could be critically hurt. In order to develop new ..

Considering the two investment opportunities : Kevin has $100,000 and is considering the following two investment opportunities. Investment A requires an initial investment of $100,000 and promises to return an annual amount of $23,740 for 5 years. Investment B requires an initial investment of $..

Straight-line-double declining-balance depreciation : An equipment costs $100,000, has a useful life of 5 years and has zero salvage value at the end of its useful life. Determine the depreciation allowance for the first two years and book value at the end of year 1 and year 2 for the following methods...

User Account

All Pages