Consider the bilateral exchange rate between Australia and New Zealand. Suppose $1 AUD buys $1.05 NZD, the Australian price level is $100 AUD and the New Zealand price level is $110 NZD. Which of the following is TRUE? a.The Australian dollar has more real purchasing power than the New Zealand dollar b.In the long run, the New Zealand dollar is likely to depreciate against the Australian dollar c.The real exchange rate is 0.90 d.The real exchange rate is 1.10

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