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sineoko [7]
3 years ago
12

If purchasing power parity holds, a bushel of rice costs $10 in the US, and the nominal exchange rate is 2 Thai bhat per dollar,

what is the price of rice in Thailand
Business
1 answer:
just olya [345]3 years ago
5 0

Answer:

20 bhat

Explanation:

Calculation for the price of rice in Thailand

Using this formula

Price=Costs×Nominal exchange rate

Let plug in the formula

Price =$10×2 Thai bhat per dollar

Price =20 bhat

Therefore the price of rice in Thailand will be

20 bhat

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