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Suppose that a slice of pepperoni pizza costs £1 in London and $2 in San Francisco. If the real exchange rate is one-third of a slice of U.S. pizza for one slice of British pizza, how many pounds should you receive in exchange for $1?
A) 1/3
B) 1.5
C) 2
D) 3
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Money, Banking, and the Financial System

Money, Banking, and the Financial System


Edition: 3rd
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