The nominal exchange rate is the price of one currency in terms of another currency. A nominal exchange rate specifies how many units of one country's currency are needed to buy one unit of another country's currency. Suppose the following table presents nominal exchange rate data for June 13, 2019, in terms of U.S. dollars per unit of foreign currency. Use the information in the table to answer the questions that follow. Foreign Currency Brazilian real (BRL) Canadian dollar (CAD) Euro (EUR) Japanese yen (JPY) Mexican peso (MXN) United Kingdom pound (GBP) Cost of One Unit of Foreign Currency (Dollars) 0.4755 0.8666 1.2151 0.008538 0.0942 1.7552 Suppose that on June 13, 2019, an antique woven rug handmade in the United Kingdom is priced at GBP 570. The approximate U.S. dollar price of the rug would be If the nominal exchange rate for the U.S. dollar-Mexican peso falls from $0.0942 to $0.07065 per Mexican peso, the Mexican peso value, or , relative to the U.S. dollar. in

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Chapter1: Making Economics Decisions
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The nominal exchange rate is the price of one currency in terms of another currency. A nominal exchange rate specifies how many units of one
country's currency are needed to buy one unit of another country's currency.
Suppose the following table presents nominal exchange rate data for June 13, 2019, in terms of U.S. dollars per unit of foreign currency. Use the
information in the table to answer the questions that follow.
Foreign Currency
Brazilian real (BRL)
Canadian dollar (CAD)
Euro (EUR)
Japanese yen (JPY)
Mexican peso (MXN)
United Kingdom pound (GBP)
Cost of One Unit of Foreign Currency
(Dollars)
0.4755
0.8666
1.2151
0.008538
0.0942
1.7552
Suppose that on June 13, 2019, an antique woven rug handmade in the United Kingdom is priced at GBP 570. The approximate U.S. dollar price of the
rug would be
If the nominal exchange rate for the U.S. dollar-Mexican peso falls from $0.0942 to $0.07065 per Mexican peso, the Mexican peso
value, or
" relative to the U.S. dollar.
in
Transcribed Image Text:The nominal exchange rate is the price of one currency in terms of another currency. A nominal exchange rate specifies how many units of one country's currency are needed to buy one unit of another country's currency. Suppose the following table presents nominal exchange rate data for June 13, 2019, in terms of U.S. dollars per unit of foreign currency. Use the information in the table to answer the questions that follow. Foreign Currency Brazilian real (BRL) Canadian dollar (CAD) Euro (EUR) Japanese yen (JPY) Mexican peso (MXN) United Kingdom pound (GBP) Cost of One Unit of Foreign Currency (Dollars) 0.4755 0.8666 1.2151 0.008538 0.0942 1.7552 Suppose that on June 13, 2019, an antique woven rug handmade in the United Kingdom is priced at GBP 570. The approximate U.S. dollar price of the rug would be If the nominal exchange rate for the U.S. dollar-Mexican peso falls from $0.0942 to $0.07065 per Mexican peso, the Mexican peso value, or " relative to the U.S. dollar. in
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