Go to the St. Louis Federal Reserve FRED database and find data on the exchange rate of U.S. dollars per British pound (
Posted: Tue Nov 16, 2021 8:14 am
Go to the St. Louis Federal Reserve FRED database and find data
on the exchange rate of U.S. dollars per British pound (DEXUSUK). A
Mini Cooper can be purchased in London, England, for £17,865 or in
Boston, United States, for $23,495.
a. Use the most recent exchange rate available to calculate the
real exchange rate of the London Mini per Boston Mini.
b. Based on your answer to part (a), are Mini Coopers relatively
more expensive in Boston or in London?
c. What price in British pounds would make the Mini Cooper
equally expensive in both locations, all else being equal?
on the exchange rate of U.S. dollars per British pound (DEXUSUK). A
Mini Cooper can be purchased in London, England, for £17,865 or in
Boston, United States, for $23,495.
a. Use the most recent exchange rate available to calculate the
real exchange rate of the London Mini per Boston Mini.
b. Based on your answer to part (a), are Mini Coopers relatively
more expensive in Boston or in London?
c. What price in British pounds would make the Mini Cooper
equally expensive in both locations, all else being equal?