given-a-nominal-exchange-rate-of-09-gbpusd-a-price-level-of-5-for-a-us-product-a

Question

Given a nominal exchange rate of 0.9 GBP/USD, a price level of $5 for a US product, and £4 for the same product in the UK, what is the real exchange rate?

Accepted Answer

1.125

Answer

0.8

Answer

1.2

Answer

0.75

Given a nominal exchange rate of 0.9 GBP/USD, a price level of \$5 for a US product, and £4 for the same product in the UK, what is the real exchange rate?