If 1 euro will buy $1.45, then$100 will purchase 69 euro.$100 will purchase 79 euro.O$100 will purchase 145 euro.the real exchange rate equals one. Suppose that a Portuguese car manufacturer decides to open four newmanufacturing plants in the United States. How would this affect the United States'balance of payments?The financial account will decrease.The current account will increase.The current account will decrease.The financial account will increase.

The exchange rate is the rate at which one currency is exchanged for another currency.

Answered: If I euro will buy $1.45, then O$100…

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Economics

If I euro will buy $1.45, then O$100 will purchase 69 euro. $100 will purchase 79 euro.

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter36: Exchange Rates And Financial Links Between Countries

Section: Chapter Questions

Problem 18E

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Question

If 1 euro will buy $1.45, then
$100 will purchase 69 euro.
$100 will purchase 79 euro.
O$100 will purchase 145 euro.
the real exchange rate equals one.

Suppose that a Portuguese car manufacturer decides to open four new
manufacturing plants in the United States. How would this affect the United States'
balance of payments?
The financial account will decrease.
The current account will increase.
The current account will decrease.
The financial account will increase.

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