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gasoline costs 1.69 euro per liter in France. What is the price in dollars per gallon?
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- KS Inc. produces a product in the United Kingdom at a cost of £0.55 per unit which it then sells in France for €1.25 per unit. If in the currency markets, 1 U.S. dollar = £0.6373 and 1 U.S. dollar = €1.0279, how much profit is realized by KS Inc. on each unit of product sold? * $0.7857 $0.3531 $0.2571 $0.1095 When the supply for money increases and the demand for money reduces, there will be * A fall in the level of prices An increase in the rate of interest A fall in the level of demand A decrease in the rate of interestIf British pounds sell for $1.30 (U.S.) per pound, what should dollars sellfor in pounds per dollar?If euros sell for $1.71 (U.S.) per euro, what should dollars sell for in euros per dollar? Round your answer to four decimal places. euros per dollar
- Abigail lives in the UK and earns 40,000 pounds sterling per year. Her friend Barry lives in Japan and earns 8 million Japanese yen per year. The cost of a standardised consumption basket is 400 pounds sterling in the UK and 100,000 yen in Japan. The nominal exchange rate is Xy/s = 200, that is, one pound sterling can be exchanged for 200 Japanese yen Is the pound sterling overvalued or undervalued compared to the Japanese yen? Explain you calculations..If one U.S. dollar buys 0.61 euro, how many dollars can you purchase for one euro?Abigail lives in the UK and earns 40,000 pounds sterling per year. Her friend Barry lives in Japan and earns 8 million Japanese yen per year. The cost of a standardised consumption basket is 400 pounds sterling in the UK and 100,000 yen in Japan. The nominal exchange rate is Xy/s = 200, that is, one pound sterling can be exchanged for 200 Japanese yen. Can Abigail or Barry buy the most standardised consumption baskets with their income? Calculate the purchasing power parity rate PPPRy/s and explain what it measures.
- A television set costs $650 in the United States. The same set costs 2,435 French francs (FF). If purchasing power parity holds, what is the spot exchange rate between the FF and the dollarIn 1985, a given Japanese imported automobile sold for 1,476,000 yen, or $8,200. If the car still sold for the same amount of yen today but the current exchange rate is 141 yen per dollar, what would the car be selling for today in U.S. dollars?In the spot market, 7.8 pesos can be exchanged for 1 U.S. dollar. A pairof headphones costs $15 in the United States. If purchasing power parityholds, what should be the price of the same headphones in Mexico?
- If a bottle of French wine priced at 200 francs can be purchased for $100, the exchange rate is?While shopping in the Mexican market, you find that limes cost 11 pesos each. You remember that back in the U.S., they cost 80 cents each. If the purchasing power parity theory holds, the rate of exchange is A. 13.75 pesos/dollar or 7.3 cents/peso. B. 80 pesos/dollar or 1.25 cents/peso. C. 7.3 pesos/dollar or 13.75 cents/peso. D. 11 pesos/dollar or 0.80 cents/peso.If a Japanese car costs 1,500,000 yen, a similar American car costs $30,000, and a dollar can buy 100 yen, what are the nominal and real exchange rates?
