Current price levels in Australia and Canada are AUD5539 and CAD10878 for an equivalent unit of...
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Current price levels in Australia and Canada are AUD5539 and CAD10878 for an equivalent unit of goods, respectively. Suppose the current spot exchange rate is CAD2.55/AUD, what is the internal and external purchasing power of AUD2 million? Is the AUD expected to appreciate or depreciate relative to the Canadian dollar? Current price levels in Australia and Canada are AUD5539 and CAD10878 for an equivalent unit of goods, respectively. Suppose the current spot exchange rate is CAD2.55/AUD, what is the internal and external purchasing power of AUD2 million? Is the AUD expected to appreciate or depreciate relative to the Canadian dollar?
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To determine the internal buying power of AUD2 million divide it by the Australian price level Inter... View the full answer
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