If a U.S. dollar purchases 4 Argentinean pesos, and a gallon of milk costs $3 in the U.S. and 6 pesos in Argentina what is the real exchange rate?

A) 2 gallons of Argentinean milk/1 gallon of U.S.milk
B) 3 gallons of Argentinean milk/2 gallon of U.S.milk
C) 2 gallons of Argentinean milk/3 gallon of U.S.milk
D) 1 gallons of Argentinean milk/2 gallon of U.S.milk

Real Exchange Rate

A measure of the value of one currency in terms of another, adjusted for differences in price levels between countries.

Argentinean Pesos

The official currency of Argentina, abbreviated as ARS, used for all types of financial transactions within the country.

Gallon of Milk

A unit of measurement for liquid volume, specifically used to measure the quantity of milk.