Maurice Tutor

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    Argosy University/ Phoniex University/
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Category > Economics Posted 27 Jun 2018 My Price 4.00

price of beef

Britain and the U.S. produce just one good - beef. The price of beef in the U.S. is $2.80 per pound, and in Britain it is £3.70 per pound.

According to PPP theory, what should the $/£ spot exchange rate be?

 

Suppose the price of beef is expected to rise to $3.10 in the U.S. and to £4.65 in Britain. What should be the one year forward $/£ exchange rate?

 

Please help however you can. Thank you!

Answers

Maurice Tutor
(5)
Status NEW Posted 27 Jun 2018 09:06 PM My Price 4.00

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