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Which of the accompanying depicts buying power equality

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Problem 1: Which of the accompanying depicts buying power equality (PPP)?

a) A hypothesis of the conversion scale in which harmony is unimaginable due to unnecessary Forex unpredictability.

b) A balance hypothesis in which Forex money rates change to oblige changes in relative costs.

c) A balance hypothesis in which Forex cash rates change to oblige changes in financing costs.

d) A balance hypothesis in which Forex cash rates change to oblige changes in exchange and capital streams.

Problem 2: In the event that a Big Mac burger feast costs £3.20 in the UK and ¥416 in Japan, what is the fitting PPP pace of trade for ¥/£?

a) ¥0.008/£1

b) ¥0.08/£1

c) ¥130/£1

d) ¥1.3/£1

 

Reference no: EM132832910

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