Sep 21, 2017 term paper 2

COUNTRY A AND COUNTRY B ARE ON THE GOLD STANDARD. THE CURRENCY OF COUNTRY A CONTAINS .1 OUNCE OF…

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Country A and country B are on the gold standard. The currency of country A contains .1 ounce of gold, whereas the currency of country B contains .025 ounce of gold. What will be the par exchange rate between the two countries?



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