Suppose in 2002 the price the price levels in the US and Australia is 100. And in the 2006 the price level in the US has increased to 150, meanwhile that in Australia rose to 230. Suppose the nominal exchange rate is $1USD=1.2AUD

84 . According to the Purchasing Power Parity, what is the nominal exchange rate in 2006? A) 1.22. off moy) Toval 5080 B) 1.45. 1.2 = 1 C) 1.53. D) 1.62. E) 1.76. 85. According to the Purchasing Power Parity, what is the real exchange rate in 2006? A) 0.75. B) 0.85. ster sufisis issue beenonogre avid blue a silenes A bexil es: $0es ni C) 1.00. of leupo ed blow slotsgasdays to D) 1.15. E) Cannot be determined with given information. 85.0 polisios