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Anne Winters, an Australian tourist, is planning a trip to Moscow. Winters is a very meticulous planner, and she is trying to estimate how much
Anne Winters, an Australian tourist, is planning a trip to Moscow. Winters is a very meticulous planner, and she is trying to estimate how much her trip will cost. To do this, she needs to know the exchange rate between the ruble and the Australian dollar. (She realizes that exchange rates fluctuate over time; however, right now she is just trying to determine a ballpark figure, so spot rates will suffice.) Winters cannot find this rate published anywhere; however, she has found the following spot rate quotations: a. Given this information, how many Russian rubles can be purchased with 1 Australian dollar? b. Given this information, how many Australian dollars can be purchased with 1 Russian ruble? You are given the following exchange rate data: A pair of Nike tennis shoes costs $85.00 in the United States. Assume that purchasing power parity holds. a. How much would that same pair of Nike tennis shoes cost in New Zealand? b. How much would that same pair of Nike tennis shoes cost in South Africa? c. How much would that same pair of Nike tennis shoes cost in Mexico
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