|
$1 |
98.48 |
Yen |
|
$1 |
0.6211 |
Pound |
Cost of TV in London = (cost of TV *$1)/ pound
cost of TV in London (in dollar)= (990*$1)/0.6211 = 1593.9462 or 1593.95
TV in London costs 1593.95 and its converted to Yen
Cost of TV in Tokyo=( TV cost in London in dollar * Yen rate )/ $1
|
Dollar |
1 |
98.48 |
Yen |
|
Dollar |
1593.95 |
Yen |
= (1593.9462 *98.48)/$1 = Yen 156971.82 or 156972
Assume that $1 can buy you either Y98.48 or £0.6211. If a TV in London costs...
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QUESTION TWO a) What is the difference between Absolute Purchasing Power Parity (APPP) and Relative Purchasing Power Parity (RPPP)? (5 Marks) b) Consider a world that only co mprises 3 goods (Good 1, Good 2, Good 3) and 2 countries (Fra nce and Japan). A (0.50, 0.25,0.25). ssume that consumption weights of these goods for both countries be The price of the goods at time t are listed below- France EUR) Japan(Yen) 20 40 80 60 Good 1 Good 2...
please provide helpful answers for both questions
posted.
Thank you
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