A kilo of mutton costs a 10 an australia and 8 in the usaa, Ask an Expert

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A kilo of mutton costs A $10 an Australia and $8 in the U.S.A.

A) If the current spot exchange rate is 0.75 $/A$, which currency is under/over valued relative to the purchasing power parity exchange rate?

B) If inflation rates in Australia and USA are 6% and 10% respectively, what is the PPP forecasted exchange rate?

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92848703

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