Please give me an explain for your answer Use the following information to answe

ID: 1095568 • Letter: P

Question

Please give me an explain for your answer

Use the following information to answer the question(s) below:2

The exchange rate between the Australian dollar and the British pound is 0.65 (i.e., 0.65 pounds per Australian dollar). In the U.K., the price level is 1.0 and the interest rate is 15%. In Australia, the price level is 0.5 and the interest rate is 10%. The inflation rate in both countries is zero.

Refer to the information above. The price of Australian goods measured in pounds is:

Select one:

a. 0.425 U.K. goods.

b. 0.525 U.K. goods.

c. 0.325 U.K. goods.

d. 0.125 U.K. goods.

e. 0.225 U.K. goods.