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How to do this question? 82. Two identical items are manufactured in both Australia and the USA. Using your knowledge of the purchasing power parity
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82. Two identical items are manufactured in both Australia and the USA. Using your knowledge of the purchasing power parity theory and the following data, forecast the AUD/USD exchange rate in years 2 and 3. ce (AUD)Price (USD)AUD/USD Year 1S17.50 Year 2 19.25 $13.60 $14.28 $1 0.7680 Year 3 $19.25 A. 0.7296 and 0.7661 B. 0.8064 and 0.7661 C. 0.8064 and 0.84671 D. 0.8448 and 0.8870Step by Step Solution
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