Question: How to do this question? 82. Two identical items are manufactured in both Australia and the USA. Using your knowledge of the purchasing power parity

How to do this question? 82. Two identical items are manufactured How to do this question?

82. Two identical items are manufactured in both Australia and the USA. Using your knowledge of the purchasing power parity theory and the following data, forecast the AUD/USD exchange rate in years 2 and 3. ce (AUD)Price (USD)AUD/USD Year 1S17.50 Year 2 19.25 $13.60 $14.28 $1 0.7680 Year 3 $19.25 A. 0.7296 and 0.7661 B. 0.8064 and 0.7661 C. 0.8064 and 0.84671 D. 0.8448 and 0.8870

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