Here is some pricing information for a pair of jeans from different countries. Country Price of a pair of jeans Actual Exchange Rate Israel 188 shekels 4.79 shekels/$ Indonesia 300,000 rupiah 9,430 rupiah/$ Mexico 530 pesos 13.3 pesos /$ For each country, compute the predicted exchange rate of the local currency per U. S. dollar. (Assume U. S. price of a pair of jean is $40). Which country (or countries) does the purchase power parity hold?
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Here is some pricing information for a pair of jeans from different countries. Country Price of a pa...
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