EBK MODERN PRINCIPLES OF ECONOMICS
3rd Edition
ISBN: 8220106882856
Author: COWEN
Publisher: MAC HIGHER
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Chapter 11, Problem 2TPS
Subpart (a):
To determine
Duration of long run.
Subpart (b):
To determine
Duration of long run.
Subpart (c):
To determine
Duration of long run.
Subpart (d):
To determine
Duration of long run.
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In this question, you will test relative purchasing parity (PPP) using the data. Use yearly
data from FRED website
from 1971 to 2020: (i) The Canadian Dollars to U.S. Dollar Spot
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index for the US (US_CPI). Inflation is measured by the consumer price index (CPI). The relative
PPP equation is:
AE CAN$/US$
ECAN$/US$
=
π CAN - πUS
Submit the Excel sheet that you worked on.
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ER 1971
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8. The current price of 3M stock is $87 per share. The previous dividend paid was $5.96, and
the next dividend is $6.25, assuming a growth rate of 4.86% per year.
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Show at least two decimal places, as in x.xx%
%
Chapter 11 Solutions
EBK MODERN PRINCIPLES OF ECONOMICS
Ch. 11 - Prob. 1FTCh. 11 - Prob. 2FTCh. 11 - Prob. 3FTCh. 11 - Prob. 4FTCh. 11 - Prob. 5FTCh. 11 - Prob. 6FTCh. 11 - Prob. 7FTCh. 11 - Prob. 8FTCh. 11 - Prob. 9FTCh. 11 - Prob. 10FT
Ch. 11 - Prob. 1TPSCh. 11 - Prob. 2TPSCh. 11 - Prob. 3TPSCh. 11 - Prob. 4TPSCh. 11 - Prob. 5TPSCh. 11 - Prob. 6TPSCh. 11 - Prob. 7TPSCh. 11 - Prob. 8TPSCh. 11 - Prob. 9TPSCh. 11 - Prob. 10TPSCh. 11 - Prob. 11TPSCh. 11 - Prob. 12TPSCh. 11 - Prob. 13TPSCh. 11 - Prob. 14TPSCh. 11 - Prob. 15TPSCh. 11 - Prob. 1CCh. 11 - Prob. 2CCh. 11 - Prob. 3CCh. 11 - Prob. 4CCh. 11 - Prob. 5C
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