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Baht-ringgit exchange rate

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Reference no: EM132506943

A can of iced tea costs 1 ringgit in Malaysia and 10 baht in Thailand. What would the baht-ringgit exchange rate be if purchasing power parity holds? If a monetary expansion caused all prices in Thailand to double so that iced tea rose to 20 baht per can what would happen to the baht-ringgit exchange rate?

Reference no: EM132506943

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