标题: Mock (AM) Q 20 [打印本页]

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作者: HuskyGrad2010    时间: 2011-7-13 15:56     标题: Mock (AM) Q 20

Mock exam morning session
Mary Marconi Scenario
Exhibit 1

Normally in foreign currency context x:y = y/x
So ratio of US price level/ UK price level is 1.5:1 means 1/1.5.

However, answer key for question 20 interpret this in other way around?

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作者: wilslm    时间: 2011-7-13 15:56

US price level/ UK price level is 1.5:1 means US Price level is 1.5 compared to UK's price level of 1.

If it costs to $1.5 to purchase a burger, the same burger would cost 1 pound in UK.

Best of luck to you all in your forthcoming exams.

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