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Purchasing-power parity holds between the nations of Ectenia and Wiknam, where the only commodity is Spam. a. In 2015, a can of Spam costs 4 dollars in Ectenia and 24 pesos in Wiknam. What is the exchange
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Purchasing-power parity holds between the nations of Ectenia and Wiknam, where the only commodity is Spam. a. In 2015, a can of Spam costs 4 dollars in Ectenia and 24 pesos in Wiknam. What is the exchange rate between Ectenian dollars and Wiknamian pesos

User Katya Pavlenko
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1 Answer

4 votes

Answer:

the exchange rate between two different currency is 6 pesos per dollar

Step-by-step explanation:

The computation of the exchange rate between two different currency is

= Unit cost of spam in Wiknam ÷ unit cost of spam in Ectenia

= 24 pesos ÷ 4 dollars

= 6 pesos per dollar

hence, the exchange rate between two different currency is 6 pesos per dollar

We simply applied the above formula so that the currency rate could come

And, the same is to be applied

User Emybob
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