assume the following scenario between maxico and the US . nominal exchange rate= 25 pesos per $ , price of Hat =$100 in the US. price of Hat in maxico 1000 pesos . if the purchasing power parity holds and the price in maxico and the US are not changing but nominal exchange rate is flexible.what will be the nominal exchange rate? (a) 10 (b) 8 (c) 1 (d) 12
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assume the following scenario between maxico and the US . nominal exchange rate= 25 pesos per $ ,
(a) 10
(b) 8
(c) 1
(d) 12
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