3) Suppose that an Apple iPhone costs $400 in the United States, £130 in the United Kingdom, and ¥70,000 in Japan. If the exchange rates are $1.50 = £1 and ¥100 = $1, what are the real exchange rates between the dollar and the yen and the dollar and the pound?

3) Suppose that an Apple iPhone costs $400 in the United States, £130 in the United Kingdom, and ¥70,000 in Japan. If the exchange rates are $1.50 = £1 and ¥100 = $1, what are the real exchange rates between the dollar and the yen and the dollar and the pound?

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter29: Exchange Rates And International Capital Flows

Section: Chapter Questions

Problem 3SCQ: Suppose U.S. interest rates decline compared to the rest of the world. What would be the likely...

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Question

3) Suppose that an Apple iPhone costs $400 in the United States, £130 in the United
Kingdom, and ¥70,000 in Japan. If the exchange rates are $1.50 = £1 and ¥100 =
$1, what are the real exchange rates between the dollar and the yen and the
dollar and the pound?

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