Question
Suppose the real exchange rate is 1 litre of Canadian gasoline per 2 litres of U.S. gasoline, 1 litre of U.S. gasoline costs $0.50 U.S.,
Suppose the real exchange rate is 1 litre of Canadian gasoline per 2 litres of U.S. gasoline, 1 litre of U.S. gasoline costs $0.50 U.S., and a litre of Canadian gas costs $1.30 Canadian. What is the nominal exchange rate?
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Given 1litre Canadian gasoline 2 litre US gasolin...
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Money Banking and Financial Markets
Authors: Stephen Cecchetti, Kermit Schoenholtz
4th edition
007802174X, 978-0078021749
