The price of a basket of goods is A$150 in Australia and 80 in Britain. If...

 

Transcribed Image Text:

The price of a basket of goods is A$150 in Australia and £80 in Britain. If the law of one price holds, the sterling to Australian dollar exchange rate should be: O £1.00 per Australian dollar O £1.875 per Australian dollar O A$0.533 per pound A$1.875 per pound O A$1.533 per pound The price of a basket of goods is A$150 in Australia and £80 in Britain. If the law of one price holds, the sterling to Australian dollar exchange rate should be: O £1.00 per Australian dollar O £1.875 per Australian dollar O A$0.533 per pound A$1.875 per pound O A$1.533 per pound

Answer rating: 100% (QA)

If the price of one dollar ... View the full answer