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agasfer [191]
3 years ago
6

Assume the BigMac is sold at US$5 in US and 3 Euro in Germany. Let's assume the current spot exchange rate is 1.21 US$/Euro. If

we believe in th PPP theory, US$ should _____ against Euro. Group of answer choices appreciate depreciate
Business
1 answer:
Blizzard [7]3 years ago
7 0

Answer:

depreciate

Explanation:

Right now the relative value of the dollar is too high. If we follow the purchasing power parity theory, the value of the US dollar against the euro should be:

current spot rate x (domestic price / foreign price) = ($1.21 / 1€) x ($5 / 3€) = $6.05 / 3€ = $2.0167 per €

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<span>The total revenue they earned from selling the football tickets is $1,200,000. As a result, they should debit cash for $1,200,000 and credit for unearned revenue for the same amount.</span>
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Economists generally believe that rent control is
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Answer:

D) An efficient and fair way to help poor

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4 years ago
Ai​ Lun, a management trainee at a large New Yorkdashbased ​bank, is trying to estimate the real rate of return expected by inve
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5 0
3 years ago
PLEASE HELP ASAP!!!
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