Business, 19.12.2019 01:31 cancerbaby209

Sydney to phoenlx. terry lamoreaux owns homes in sydney, australia, and phoenix, united states. he travels betweenthe two cities at least twice a year. because of his frequent trips, he wants to buy some new high-quality luggage. he hasdone his research and has decided to purchase a briggs and riley three-piece luggage set. there are retail stores inphoenix and sydney. terry was a finance major and wants to use purchasing power parity to determine if he is paying thesame price regardless of where he makes his purchase. a. if the price of the three- piece luggage set m phoenix is $850 and the price of the same three- piece set in sydney isas930, using purchasing power parity, is the price of the luggage truly equal if the spot rate is aslo941/s‘? b. if the price of the luggage remains the same in phoenix one year from now, determine the price of the luggage insydney in one year’s time if ppp holds true. the us. inflation rate is 1.15% and the australian inflation rate is 3.13%.

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Sydney to phoenlx. terry lamoreaux owns homes in sydney, australia, and phoenix, united states. he t...