Multiple Choice
According to purchasing-power parity theory, if the same fast-food hamburger costs $4.00 in Canada and 8 euros in France, what should the nominal exchange rate be?
A) 1/4 euros per dollar
B) 1/2 euro per dollar
C) 1 euro per dollar
D) 2 euros per dollar
Correct Answer:
Verified
Correct Answer:
Verified
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