e, a basket of hamburgers sells a ame basket of burgers at price HI

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
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Chapter1: Making Economics Decisions
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Answer part b only

Part (b)
Once upon a time, a basket of hamburgers sells at A$15 in Australia. Across the ocean, Hong
Kong sells the same basket of burgers at price HK$85. What does the purchasing power parity
theory predict the nominal exchange rate to be?
Transcribed Image Text:Part (b) Once upon a time, a basket of hamburgers sells at A$15 in Australia. Across the ocean, Hong Kong sells the same basket of burgers at price HK$85. What does the purchasing power parity theory predict the nominal exchange rate to be?
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