Mathematics, 13.11.2020 09:10 sk9600930
A can of soda costs $1.20 in the United States and 30 pesos in Mexico. Assume purchasing-power parity holds. The peso–dollar exchange rate is pesos per dollar. Suppose a monetary expansion causes all prices in Mexico to double, so that the price of soda in Mexico rises to 60 pesos. The peso–dollar exchange rate is now pesos per dollar.
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A can of soda costs $1.20 in the United States and 30 pesos in Mexico. Assume purchasing-power parit...
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