Find the cost of the market basket

Reference no: EM131479777

Question: Use the table that follows to answer this question. Treat the country listed as the home country, and treat the United States as the foreign country. Suppose the cost of the market basket in the United States is PUS = $190. Check to see whether PPP holds for each of the countries listed, and determine whether we should expect a real appreciation or real depreciation for each country (relative to the United States) in the long run. For the answer, create a table similar to the one shown and fill in the blank cells. (Hint: Use a spreadsheet application such as Excel.)

Reference no: EM131479777

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