Business, 25.03.2021 17:20 chloeann5397
If the representative basket of European goods and services costs 40 euros, the representative U. S. basket costs $50, and the dollar/euro exchange rate is $0.90 per euro, then the price of the European basket in terms of U. S. basket is:
a. [(0.9 $/euro) (40 euro per a European basket)]/[(50 $/U. S. basket)].
b. [(0.9 $/euro) (50 $/U. S. basket)]/[(40 euro per a European basket)].
c. [(50 $/U. S. basket)].
d. [(0.9 $/euro) (40 euro per a European basket) (50 $ U. S. basket)].
e. [(40 euro per a European basket)]/[(50 $/U. S. basket) (0.9 $/euro)].
Answers: 2
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If the representative basket of European goods and services costs 40 euros, the representative U. S....
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