Consider the following conditions: follows The exchange rate between the U. S. dollar and the British pound is pound. equals$1. follows The U. S. price level is 100 and the British price level is 105. The real exchange rate equals nothing. (Enter your response rounded to two decimal places.)

The real exchange rate equals

1.05.

Explanation:

To calculate the real exchange rate use the formula:

R = (E x P*)/P

Where:

R: real exchange rate =?

E: nominal exchange rate =$1

P*: foreign price level =105

P: domestic price level =100

R= (1 x 105) / 100 =1.07 rounded to two decimal places.

Remember, the real exchange rate is only a measure of the price of foreign goods relative to the price of domestic goods of a country.

1   all nations face the problem of scarcity because there are limited resources and unlimited wants. nations do not have enough factors of production to produce everything that their population wants. entrepreneurial resources initiate businesses to make new goods and services; labor resources produce goods and services.

2 there are four factors of production: natural resources, labor resources, capital resources, and entrepreneurial resources. natural resources are raw materials from nature that are used to produce goods. trees, water, and grains are natural resources. some natural resources, such as wheat and cattle, are renewable

3 wants

things that you do not need to have in order to survive, but would like to have

needs

things that you must have in order to survive

goods

physical products

services

tasks that a business perform for customers

resources

items that people can use to make or obtain what they need or want

determine

to settle or decide by choice of alternatives or possiblities

4 i really dont know

answer; normative economics;