Final answer:
The real value of the NZD/AUD exchange rate, calculated using the provided price levels in New Zealand and Australia, results in a rate of approximately 1.00082, which is not listed in the given options.
Step-by-step explanation:
The question asks for the calculation of the real exchange rate between the New Zealand dollar (NZD) and the Australian dollar (AUD), which takes into account the price levels of the two countries involved. The nominal NZD/AUD exchange rate is given as 1.35. To calculate the real exchange rate, we use the formula:
Real Exchange Rate = (Nominal Exchange Rate × Price Level of the Domestic Country) / Price Level of the Foreign Country
Plugging the given values into the formula, we get:
Real Exchange Rate = (1.35 × 11,204) / 15,063
Real Exchange Rate = 15,075.4 / 15,063
Real Exchange Rate = 1.00082
Since none of the provided options exactly match this result, the correct answer is e. None of the options.