We will see that the real exchange rate is approximately 1.447 markas per U.S. dollar.
Here we need to perform a change of units procedure.
We know that the price of a refrigerator in Bosnia is 1964 markas, while in the US is $1357.
Then we can write the relation:
1964 markas = $1357
Now, we want to find the value in markas for a single dollar, then we divide both sides by 1357 to get:
(1964 markas)/1357 = $1357/1357
1.447 markas = $1
This means that the exchange rate is 1.447 markas per U.S. dollar.
If you want to learn more about changes of units, you can read:
https://brainly.com/question/9032119
