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:

Frameshift Mutation

A genetic mutation caused by insertions or deletions of a number of nucleotides in a DNA sequence that is not divisible by three, altering the reading frame.

Nucleotide Sequence

The order of nucleotides in a segment of DNA or RNA, determining genetic information.

Mutations

Permanent alterations in the DNA sequence of a gene, which can lead to changes in the protein product and have various effects on an organism's traits.

DNA

Deoxyribonucleic acid, a molecule that carries the genetic instructions used in the growth, development, functioning, and reproduction of all known living organisms and many viruses.