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2. You have an avocado tree, which grows 10 avocados this year, 10 next year. Your neighbor has an avocado tree, which grows 0 avocados

2. You have an avocado tree, which grows 10 avocados this year, 10 next year. Your neighbor has an avocado tree, which grows 0 avocados this year, 50 next year.

(a) Is "1 today = 2 tomo" an equilibrium exchange rate?

(b) Calculate the equilibrium exchange rate "1 today = v tomorrow".

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