MinisterTankScorpion2? Answered 9 minutes ago Real exchange rate = 1.25 Explanation: Value of car in domestic country = 40000 Value of car in country B = 50000 Exchange rate = 40000/50000 = 0.8 Hence 0.8 units of our currency =1 unit of country B currency In other words 1.25 unit currency of B =1 unit currency of A (domestic) Real exchange rate = 1.25 For the next two questions, consider Country A (which we'll consider our domestic economy) and Country B. One unit of Country A's currency trades for 2.5 units of Country B's currency. A car that sells for 40,000 units of Country A's currency (in Country A} sells in Country B for 50,000 units of its currency. Calculate the real exchange rate, using Country A as the domestic economy. Carefully follow all numeric instructions. We'll use this information again in the next