eco
posted by Karen .
Assume that American rice sells for $100 per bushel, Japanese rice sells for 16,000 yen per bushel, and the nominal exchange rate is 80 yen per dollar. Suppose that rice is the only commodity in the world. What would happen to the real exchange rate between the United States and Japan?
Is it equal to 1? If not, can anyone please correct me and explain it to me?
THANKS A LOT!!!

Based on commodities, then
1 bushel= 1 bushel or
100 dollars= 16000 yen.
or 1 dollar= 160 yen 
Assume that American rice sells for $100 per bushel, Japanese rice sells for 16,000 yen per bushel, and the exchange rate is 80 yen per 1 dollar. Explain how you can make a profit in this situation. What would be your profit per bushel of rice?
Respond to this Question
Similar Questions

Numerical & Proportional Reasoning
Kendra traveled to Europe and Japan on a buisness trip. In europe, she exchanged 300 U.S dollars for euros and spent 100 euros. she went to Japan and exchanged her remaining euros for yen. She spent 10,000 yen while in Japan. the exchange … 
arithmetic
a recipe for rice pudding uses 1/2 cup of rice and serves 6 people. write the cups of rice per person as a unit rate . how many cups of rice do you need to serve 75 people? 
algebra
Wild rice sells for $6 pound, and plain rice sells for $1 per pound. A grocer wants 10 pounds if the mixture to sell for $2 per pound. How much of each type should he used? 
Microecomics
Assume that American rise sells for $100 per bushel, Japanese rice sells for 16,000 yen per bushel, and the nominal exchange rate is 80 yen per dollar. Explain how you could make a profit from this situation. What would be your profit … 
Econ
Assume that American rise sells for $100 per bushel, Japanese rice sells for 16,000 yen per bushel, and the nominal exchange rate is 80 yen per dollar. A.Explain how you could make a profit from this situation. What would be your profit … 
macroeconomics
assume that American rice sells for 100.00 per bushel, japanese rice sells for 16,000 yen per bushel, and the exchange rate is 80 yen per 1 dollar. what would be your profit per bushel of rice, and how you can make a profit in this … 
math
Kenyan businessman bought goods from Japan worth 2, 950 000 Japanese yen. On arrival in Kenya custom duty of 20% was charged on the value of the goods. If the exchange rates were as follows: 1 US dollar = 118 Japanese Yen 1 US dollar … 
Math
The Japanese yen corresponds to the american dollar. If the exchange rate is 150 Yen for 1 Dollar, then A japanese car sold in america for $10,000 will bring in 1,500,000 yen. If the exchange rate changes to 120 yen for each dollar, … 
math
A 4pound box of rice, which is a mixture of white rice and wild rice, sells for $1.80 per pound. White rice sells for $0.75 per pound. Wild rice sells for $2.25 per pound. How many pounds of white rice are in the mixture? 
math
After 20% increase in cost per kg of rice, a family can now buy 4kg less rice in rs240.what was the original price per kg of rice?