Answer to Question #276745 in Macroeconomics for Anna

Question

There are how many Bahraini dinars per U.S. dollar if the nominal exchange rate is 3 Argentine pesos per U.S. dollar, and 0.202 Bahraini dinars per Argentine peso?

A. 0.333

B. 0.606

C. 4.95

D. 0.67

Answer 1

$Solution$

$1)B\ (0.606)$

$3\ pesos=\$1\\ 1\ peso=0.202\ dinars\\ 3\ pesos=?\\ \frac{3}{1} \times 0.202=0.606\\Therefore \ 0.606 \ dinars =\$1$