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5. Anna has the option to purchase a laptop from the U.S. or Japan. The laptop's U.S. price in the U.S. is 340 dollars and in Japan, the same laptop costs 38,000 Japanese yen. If you know that each 3.4 U.S. dollars are equivalent to 372.26 Japanese Yen. Find the U.S. nominal exchange rate. Find the U.S. real exchange rate. Assuming there are no shipping expenses, should Anna buy the laptop from the U.S. or Japan? Please explain.

5. Anna has the option to purchase a laptop from the U.S. or Japan. The laptop's U.S. price in the U.S. is 340 dollars and in Japan, the same laptop costs 38,000 Japanese yen. If you know that each 3.4 U.S. dollars are equivalent to 372.26 Japanese Yen. Find the U.S. nominal exchange rate. Find the U.S. real exchange rate. Assuming there are no shipping expenses, should Anna buy the laptop from the U.S. or Japan? Please explain.

Brief Principles of Macroeconomics (MindTap Course List)
Brief Principles of Macroeconomics (MindTap Course List)
8th Edition
ISBN:9781337091985
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter13: Open-economy Macroeconomics: Basic Concepts
Section: Chapter Questions
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5. Anna has the option to purchase a laptop from the U.S. or Japan. The laptop's U.S. price in the U.S. is 340 dollars and in Japan, the same laptop costs 38,000 Japanese yen. If you know that each 3.4 U.S. dollars are equivalent to 372.26 Japanese Yen. Find the U.S. nominal exchange rate. Find the U.S. real exchange rate. Assuming there are no shipping expenses, should Anna buy the laptop from the U.S. or Japan? Please explain.
Transcribed Image Text:5. Anna has the option to purchase a laptop from the U.S. or Japan. The laptop's U.S. price in the U.S. is 340 dollars and in Japan, the same laptop costs 38,000 Japanese yen. If you know that each 3.4 U.S. dollars are equivalent to 372.26 Japanese Yen. Find the U.S. nominal exchange rate. Find the U.S. real exchange rate. Assuming there are no shipping expenses, should Anna buy the laptop from the U.S. or Japan? Please explain.
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