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Please provide step by step solution for these problems 30. Given a home country and a foreign country, purchasing power parity suggests that: a. the
Please provide step by step solution for these problems 30. Given a home country and a foreign country, purchasing power parity suggests that: a. the inflation rates of both countries will be the same b. the nominal interest rates of both countries will be the same c. both a and b d. none of the above not feasible 31. If interest rate parity exists, then, i a. forward realignment arbitrage b. triangular arbitrage c. covered interest arbitrage d. locational arbitrage Please use the following information to answer the next two questions: Price of a Big Mac in USA is $3.25 and at the same time, in Japan it is 290Yen. 32. What is the implied exchange rate (in JPY/USD) a. 102 JPY/USD b. 78 JPY/USD c. 89 JPY/USD d. 71 JPY/USD 33. If the actual exchange rate in the market was 95 Yen /S, then this implies that the Japanese Yen is against the dollar by % a. Undervalued by 6.3% b. Overvalued by 7.8% c. Undervalued by 1.8% d. Overvalued by 3.3%
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