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need help asap As of October 26, one US dollar would exchange for 0.86 British Pounds. The current price of tea in the US is

need help asap

As of October 26, one US dollar would exchange for 0.86 British Pounds. The current price of tea in the US is $125 while the same tea in Britain costs 100 Pounds; assume tea is a representative good. a. Does PPP exist? Show how you found this.

b. What initial effect(s) would this have in the dollar-pound exchange market? How would the market adjust to this/these? Effect(s) on equilibrium?

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