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Suppose that an Apple iPhone costs ​$200 in the United​ States, ​£60 in the United​ Kingdom,...

Suppose that an Apple iPhone costs ​$200 in the United​ States, ​£60 in the United​ Kingdom, and ​¥30,000 in Japan. If the exchange rate between the pound and the dollar is ​$1.20 ​= £1, the real exchange rate between the pound and the dollar is nothing. ​(Enter your response rounded to two places​.) If the exchange rate between the dollar and the yen is ¥100 ​= $1, the real exchange rate between the dollar and the yen is nothing

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Answer #1

Apple iPhone Cost in US = $200

Apple iPhone Cost in United Kingdom = £60

Real Exchange rate between dollar and Pound = Apple iPhone Cost in US / Apple iPhone Cost in United Kingdom

= $200 /  £60

= 3.333333

If the exchange rate between the pound and the dollar is ​$1.20 ​= £1, the real exchange rate between the pound and the dollar is ​$3.33 ​= £1

Apple iPhone Cost in US = $200

Apple iPhone Cost in Japan = ¥30,000

Real Exchange rate between dollar and Pound = Apple iPhone Cost in Japan / Apple iPhone Cost in United States

= ¥30,000 / $200

= ¥150

If the exchange rate between the dollar and the yen is ¥100 ​= $1, the real exchange rate between the dollar and the yen is ¥150 = 1

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