Extended Ricardian model - Wage limits and Exchange Rate Limits The following Classical-type table shows the labor requirements in the production of each of the two commodities in each of the two countries. Assume that the U.S. worker's wage is $30 per day and Japanese worker's wage is V2200 per day. The fixed exchange rate is $1-110 V (1 Dollar exchanges for 110 Japanese Yen). Cars Jewelry United States 20 days 10 days Japan 20 days 30 daysNow Assume that the U.S. worker's wage is still $30 per day and and Japanese worker's wage is v2200 per day. The exchange rate could be floating now. Cars Jewelry United States 20 days 10 days Japan 20 days 30 days a. If trade is taking place between the two countries, the "lower limit" to exchange rate is 1 dollar = Japanese Yen(keep 2 decimals). b. If trade is taking place between the two countries, the "upper limit" to exchange rate is 1 dollar = Japanese Yen