Multiple Choice
Suppose a cup of coffee is €1.50 in Germany and £0.50 in the UK. If purchasing power parity holds, what is the nominal exchange rate between euros and pounds?
A) €0.33 per pound
B) €1.50 per pound
C) €0.75 per pound
D) €3 per pound
Correct Answer:
Verified
Correct Answer:
Verified
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