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Current price levels in Australia and Canada are AUD5539 and CAD10878 for an equivalent unit of goods, respectively. Suppose the current spot exchange rate

Current price levels in Australia and Canada are AUD5539 and CAD10878 for an equivalent unit of goods, respectively. Suppose the current spot exchange rate is CAD2.55/AUD, what is the internal and external purchasing power of AUD2 million? Is the AUD expected to appreciate or depreciate relative to the Canadian dollar?

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