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Business, 20.01.2020 18:31 sighgabbie

What will be the equilibrium exchange rate? suppose the current exchange rate between the u. s. dollar and the mexican peso is $0.12 = 1 peso. furthermore, suppose the price level in mexico rises 25 percent while the u. s. price level remains constant. according to the purchasing power parity theory. a. $0.15 = 1 pesob. $0.09 = 1 pesoc. $0.16 = 1 pesod. $0.096 = 1 peso

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