Country A has a GDP of $4,600 in Country A dollars, and Country B has a GDP of $2,400 in Country B dollars. If the exchange rate is 1.5 Country B dollars to 1 Country A dollar, what is Country B's GDP in Country A dollars

Country A $1,600

Explanation:

Country A's currency is stronger than Country B's which is why Country B needs more of its currency to buy a single unit of Currency A.

You can use direct proportion to find out Country B's GDP in Country A dollars

Country B currency to Country A

1.5       :   1

2,400 :   x

1.5x = 2,400

x = 2,400 / 1.5

= Country A $1,600

due to the changes the federal reserve is making the unused reserves will impact the economy by them facing inflation. inflation is definfed as the increase in pricing of a good or service but the decline of the value of money used for purchasing those items. when the economy has a high inflation rate, they are subject to money loss and hurt on the economy.

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