Multiple Choice
Suppose the price of a standard pair of sport shoes is €65 in France and $90 in Canada, and the current exchange rate is 0.70 euro for one dollar. What is the purchasing-power parity exchange rate of the dollar?
A) 0.72 euro/dollar
B) 1.03 euro/dollar
C) 1.33 euro/dollar
D) 1.43 euro/dollar
Correct Answer:
Verified
Correct Answer:
Verified
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