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1. (a) Suppose that soybeans are priced at $5.30 a bushel in the US, that soybeans are priced at $7.10 per bushel in Canada. Based

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1. (a) Suppose that soybeans are priced at $5.30 a bushel in the US, that soybeans are priced at $7.10 per bushel in Canada. Based on LOP what is the exchange rate? (b) Suppose, the exchange rate, S = $ 1.10. If the Big Mac Price in Germany is 4.00 and the U.S. price is $5.50. What is the real exchange rate of the USA

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