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A Canadian is buying a basket of goods which costs $88 while a British consumer is buying the same basket of goods which costs 49

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A Canadian is buying a basket of goods which costs $88 while a British consumer is buying the same basket of goods which costs 49 in the UK. The current GBPCAD exchange rate is $1.60. What is the real exchange rate? Is the Canadian Dollar cheap or expensive ? Name 3 factors which could explain why they are different? P

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