Question: explain and answer Question 3 1.2 points Assume the following is true at t=0: 1. RE = 10% 2. TAU = 5% 3. EU =

explain and answer

Question 3 1.2 points Assume the following is true at t=0: 1. RE = 10% 2. TAU = 5% 3. EU = 15% 4. PAU = 1500; PEU = 1000; ES/E = 1.30 5. The deviation from absolute PPP is due to transportation costs, that are expected to change in the future. What is the correct value of R$? O A. 15% O B. 5% O C. 20% O D. The above information is not enough to calculate R$ O E. 0%

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