Question

Country A has a GDP of $7,000 in Country A dollars, and Country B has a GDP of $4,600 in Country B dollars. If the exchange rate is 1.25 Country B dollars to 1 Country A dollar, what is Country B's GDP in Country A dollars?

Answer 1

At an exchange rate of 1.25 Country B dollars for 1 Country A dollar, Country B's GDP of $4,600 in Country B dollars is equivalent to $3,680 in Country A dollars.

Step-by-step explanation:

The student's question asks about the Gross Domestic Product (GDP) of two different countries when accounting for the exchange rate between their currencies.

Country B's GDP is given in Country B dollars, and we must convert it to Country A dollars using the provided exchange rate. With an exchange rate of 1.25 Country B dollars for 1 Country A dollar, we can calculate Country B's GDP in terms of Country A dollars.

To convert Country B's GDP into Country A dollars, we need to divide Country B's GDP of $4,600 by the exchange rate of 1.25. This calculation gives us the GDP of Country B in terms of Country A dollars:

Country B's GDP in Country A dollars = Country B's GDP / Exchange rate

Country B's GDP in Country A dollars = $4,600 / 1.25

Country B's GDP in Country A dollars = $3,680