Exercise 6 (+additional question) in Mankiw:
Problem 8.7: Assume that GDP per capita in Sweden and Zambia in 2002 were 16000 and 800 USD, respectively, and that the growth rate of GDP per capita in Sweden and Zambia is 1 and 7 percent, respectively. ... falls from 200 yen/dollar to 100 yen/dollar. If an American can of tennis balls costs 2.50 dollars, its price in yen falls from 500 to ... ................
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