A Bushel of Apples Costs $15

question 64

Essay

A bushel of apples costs $15.00 in the U.S. The same apples cost 1,600 yen in Japan. If the exchange rate is 80 yen per dollar, is there a possibility for arbitrage? Explain and defend your answer. As part of your defense, find the real exchange rate.

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Definitions:

College Drinking

The consumption of alcohol by college and university students, often discussed in the context of social norms, binge drinking, and its impacts on academic performance and health.

Abstinence Programs

Educational programs aimed at preventing substance abuse and sexual activity by promoting abstinence as the only effective method.

Gradual Withdrawal

The process of slowly reducing the intake of a substance to minimize withdrawal symptoms in the treatment of substance dependence.

Heroin

An opioid drug derived from morphine, highly addictive and illegal, used recreationally for its euphoric effects.