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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.


Definitions:

Chesapeake

An area in the United States known for the Chesapeake Bay, significant for its ecological importance as well as its role in American history and maritime activities.

Eighteenth Century

A historical period from 1701 to 1800, characterized by significant developments in politics, science, philosophy, and the arts.

Congregational Churches

Congregational Churches are Christian churches where each congregation independently and autonomously runs its affairs, often with a Protestant orientation.

Seating

The arrangement or provision of seats, especially in terms of layout or occupancy in a public or private space.

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