Partial Answer Key
a. Calculate the level of GDP per capita in each country, measured in its own currency. Richania: 90*4 + 30*100 = 3360 Richanian dollars (R$) Pooristan: 15*2 + 5*10 = 80 Pooristanian dollars (P$) b. Calculate the market exchange rate between the currencies of the two countries. 2 R$/1 P$ (look at traded good prices for this rate) c. ................
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