If the representative basket of European goods and services costs 40 euros, the representative U.S. basket costs 50, and the dollar/euro exchange rate is 0.90 per euro, then the price of the European basket in terms of U.S. basket is
A) (0.9 /euro) (40 euro per a European basket)/(50 /U.S. basket).
B) (0.9 /euro) (50 /U.S. basket)/(40 euro per a European basket).
C) (40 euro per a European basket)/(50 /U.S. basket) (0.9 /euro).
D) (50 /U.S. basket).
E) (0.9 /euro) (40 euro per a European basket) (50 U.S. basket).
Question 2
The U.S. and the Canadian currencies are the only two in the world that are called dollars.
Indicate whether the statement is true or false
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