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please look at my old homework and tell me what is the correct answer and why its the correct answer. (my orginal answer is circled
please look at my old homework and tell me what is the correct answer and why its the correct answer. (my orginal answer is circled in pencil and the correct answer circled in red)
11. If the price level in the US is 100 and the price level in Bolivia is 57, according to ab which of the following? solute PPP, the exchange rate between the Boliviano and the US Dollar should be a. 57 160 1,15 0.57 1.75 d175 None of the above 12. If the price of a Big Mac in New York is $3.89 and the price of a similar Big Mac in Argentina is 35 pesos, and the current spot rate is 20 pesos/S, then Absolute PPP holds that: The USD is currently overvalued and will depreciate versus the peso The USD is currently overvalued and will appreciate versus the peso The USD is currently undervalued and will appreciate versus the peso The USD is currently undervalued and will depreciate versus the peso a. None of the above 13. The spot rate is \100s. The inflation rate in Japan is 1%, while the US inflation rate is 3%,According to relative PPP, what is the forecast spot rate in 1 year? a.) 102 b. 101 100 100(3+1 ) Step by Step Solution
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