E4 11. Pricing foreign goodsThe nominal exchange rate is the price of one currency in terms of another currency. A nominal exchange rate specifies how many units of onecountry's currency are needed to buy one unit of another country's currency.Suppose the following table forecasts nominal exchange rate data for February 1, 2019, in terms of Canadian dollars per unit of foreign currency. Usethe information in the table to answer the questions that follow.Foreign CurrencyUnited States dollar (USD)euro (EUR)Japanese yen (JPY)Mexican peso (MXN)United Kingdom pound (GBP)Cost of One Unit of Foreign Currency(Dollars)1.311.500.0120.0681.72Source: "Bank of Canada," https://www.bankofcanada.ca/rates/exchange/daily-exchange-rates/.Suppose that on February 1, 2019, a marble statue handmade in Japan is priced at 250,000 JPY. The approximate Canadian dollar price of the statuewould beIf the nominal exchange rate for the Canadian dollar-U.S. dollar, rises from $1.31 to $1.41 per U.S. dollar, the Canadian dollarvalue, orrelative to the U.S. dollar.in

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 forecasts nominal exchange rate data for February 1, 2019, in terms of Canadian dollars per unit of foreign currency. Use the information in the table to answer the questions that follow.