Question
If currently the exchange rate between US dollars and British pounds is 2:1 (it takes two US dollars to buy one British pound), and a
If currently the exchange rate between US dollars and British pounds is 2:1 (it takes two US dollars to buy one British pound), and a Whopper costs $2.25 in the US and 1.50 pounds in Great Britain,
What would you expect the long term exchange rate to be between the dollar and pound?
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Macroeconomics A European Perspective
Authors: Olivier Blanchard, Alessia Amighini, Francesco Giavazzi
4th Edition
1292360895, 9781292360898
