Problem
Assume that the prices of a standard basket of goods and services in different countries are as follows
United States $400
Canada C$550
United Kingdom £280
Japan ¥60,000
What are the implied PPP exchange rates?
How would the presence of a high sales tax in Britain, such as the VAT, influence your guess of where the actual value of S($/£) would be vis a` vis the PPP value of S($/£)?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.