Assume the exchange rate is 1 Australian dollar equals 1.10 New Zealand dollars.If purchasing power parity is correct,a DVD that has a price of $10 in Melbourne,in New Zealand has a price of ________ New Zealand dollars.
A) 11.11
B) 10.10
C) 11.00
D) 9.09
E) 10.00
Correct Answer:
Verified
Q63: The exchange rate is volatile because
A) the
Q66: Q68: Purchasing power parity determines the exchange rate Q69: When the Australian interest rate rises, the Q70: Yesterday, the Australian dollar was trading in Q133: Purchasing power parity can be used as Q140: When people expect that the future exchange Q141: If the Reserve Bank raises interest rates Q142: Interest rate parity occurs when Q143: To appreciate the Australian dollar against the
A)an
A)the interest rate
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