In a world economy consisting of France and Australia, both countries.pdf

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In a world economy consisting of France and Australia, both countries produce only one good: wine. A bottle of wine costs EUR 3.45 in France, and AUD 6.16 in Australia. France and Australia have engaged in a target-zone arrangement, in which the central rate is EUR0.73/AUD and exchange rates are allo to fluctuate by 19%. The current exchange rate is EUR0.8322/AUD. If France imposes a tariff of EUR0.45 per bottle on wine imported from Australia, what is the maximum possible spot exchange rate that could occur if absolute PPP holds? a. EUR0.83/AUD b. EUR0.56/AUD c. EUR0.73/AUD d. EUR1.66/AUD e. EUR0.49/AUD.

In a world economy consisting of France and Australia, both countries produce only one good:
wine. A bottle of wine costs EUR 3.45 in France, and AUD 6.16 in Australia. France and
Australia have engaged in a target-zone arrangement, in which the central rate is EUR0.73/AUD
and exchange rates are allo to fluctuate by 19%. The current exchange rate is EUR0.8322/AUD.
If France imposes a tariff of EUR0.45 per bottle on wine imported from Australia, what is the
maximum possible spot exchange rate that could occur if absolute PPP holds? a. EUR0.83/AUD
b. EUR0.56/AUD c. EUR0.73/AUD d. EUR1.66/AUD e. EUR0.49/AUD

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Salient Features of India constitution especially power and functions

Salient Features of India constitution especially power and functions

Salient Features of India constitution especially power and functions

Kodo Millet PPT made by Ghanshyam bairwa college of Agriculture kumher bhara...

Kodo Millet PPT made by Ghanshyam bairwa college of Agriculture kumher bhara...

Kodo Millet PPT made by Ghanshyam bairwa college of Agriculture kumher bhara...

REMIFENTANIL: An Ultra short acting opioid.pptx

REMIFENTANIL: An Ultra short acting opioid.pptx

REMIFENTANIL: An Ultra short acting opioid.pptx

In a world economy consisting of France and Australia, both countries.pdf

1. In a world economy consisting of France and Australia, both countries produce only one good: wine. A bottle of wine costs EUR 3.45 in France, and AUD 6.16 in Australia. France and Australia have engaged in a target-zone arrangement, in which the central rate is EUR0.73/AUD and exchange rates are allo to fluctuate by 19%. The current exchange rate is EUR0.8322/AUD. If France imposes a tariff of EUR0.45 per bottle on wine imported from Australia, what is the maximum possible spot exchange rate that could occur if absolute PPP holds? a. EUR0.83/AUD b. EUR0.56/AUD c. EUR0.73/AUD d. EUR1.66/AUD e. EUR0.49/AUD