Multiple Choice
The price of a commodity in the US is USD2.54, while the price of the same commodity in Australia is AUD3.00 and the AUD/USD exchange rate is 1.8769.
What is the AUD/USD exchange rate compatible with the derivation of PPP?
A) USD/AUD 0.8467
B) AUD/USD 1.8769
C) AUD/USD 0.8467
D) AUD/USD 1.1811
Correct Answer:
Verified
Correct Answer:
Verified
Q16: Assuming the exchange rate is measured in
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Q22: Which of the following assumptions is NOT
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