5a. Assume that a basket of goods and services costs $30, 000 in If the U.S. and 40,000 Australian dollars (AUD) in Australia. PPP holds, what is Es/AUD ? b. Provide one explanation for why PPP may not hold in the short run.

5a. Assume that a basket of goods and services costs $30, 000 in If the U.S. and 40,000 Australian dollars (AUD) in Australia. PPP holds, what is Es/AUD ? b. Provide one explanation for why PPP may not hold in the short run.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Economics