Suppose only two goods: good A and good B are consumed in Australia and Europe. Assume the following: i. 1 unit of A costs $150 in Australia ii. 1 unit of B costs $300 in Australia 111. The law of one price holds for both good A and good B iv. In Europe, good A and good B each account for 50% of the aggregate consumption expenditure. Hence the European government constructs the EU Price Index as 0.5*(Price of A in Euros) + 0.5*(Price of B in Euros) v. In Australia, good A and B account for 90% and 10% of the aggregate consumption expenditure respectively. Hence the Australian government constructs the AU Price Index as 0.9*(Price of A in AUD) + 0.1*(Price of B in AUD) If E$1 =1.5, choose the most appropriate option: O A. The EU price index = 150; the AU price index in AU = $225; Absolute PPP holds O B. The EU price index = 225; the AU price index in AU = S120; Absolute PPP holds O C. The EU price index = 150, the AU price index in AU = $165; Absolute PPP holds O D. The EU price index = 150, the AU price index in AU = $180; Absolute PPP does not hold O E. The EU price index = 150, the AU price index in AU = $165; Absolute PPP does not hold