Given the following parameters for a closed economy: Y=100, T=20, C=60, & I=15, Calculate national savings (S), including the breakdown of private and public savings.
If $1NZ can buy £0.8UK, then how much can £1UK buy of $NZ?
If a pint of beer costs $8 in New Zealand and £4.5 in the United Kingdom, assuming purchasing power parity holds, what is the UK£-NZ$ exchange rate?
If the nominal exchange rate between Australia and New Zealand is 0.94 and a widget costs $104 in New Zealand and $94 in Australia, calculate the real exchange rate and interpret your answer.
Continuing from c. and keeping the prices the same, what nominal exchange rate would give as a real exchange rate of 1?