What is the real exchange rate ?

Question

What is the real exchange rate between Canadian and Malaysian baskets of goods?

Consider a basket of consumer goods. The basket of goods costs $100 in Canada. The same basket of goods costs 300 ringgit in Malaysia. The nominal exchange rate is 4 ringgit per dollar.

8.1. What is the real exchange rate between Canadian and Malaysian baskets of goods?

A. 2.5 baskets of Malaysian goods per basket of Canadian goods

B. 0.8 basket of Malaysian goods per basket of Canadian goods

C. 1.3 baskets of Malaysian goods per basket of Canadian goods

D. 1 basket of Malaysian goods per basket of Canadian goods

Answer 1

Convert 300 ringgit to Dollars (hint, divide by 4)

This gives you a price for ONE Malaysian basket ...

Now ask yourself, "How many Malaysian baskets could I buy for $100 (one Canadian basket) ?" ..

The answer you get (lets call it 'X') means X Malaysian baskets = one Canadian basket

Answer 2

????????but  good q ..