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Need help with numbers 1-4, based on the numbers provided for Country A and B. CountryA CountryB Food Total Food Total Quantity Prices 15 20
Need help with numbers 1-4, based on the numbers provided for Country A and B.
CountryA CountryB Food Total Food Total Quantity Prices 15 20 Prices in Country A Prices in Country B A$ per B$ Exchange Rate 1. Assuming the law of one price holds, find the exchange rate between the two countries in terms of currency of Country A (AS) per currency in Country B (BS) 2. Use the exchange rate from the previous question to compute income/expenditure per person in AS for both countries According to this measure, what is the ratio of country A's income/expenditure per person relative to that of country B's 3. Use the prices in country A to evaluate the cost of each country's basket. According to this measure, what is the ratio of country A's income/expenditure per person relative to that of country B's 4. Use the prices in country B to evaluate the cost of each country's basket. According to this measure, what is the ratio of country A's income/expenditure per person relative to that of country B'sStep by Step Solution
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