If the Theory of Purchasing Power Parity Holds, Then How

Multiple Choice

If the theory of purchasing power parity holds, then how much does an Egyptian tapestry cost in the United States if the same tapestry sells for 15,000 Egyptian pounds in Egypt and the exchange rate is $0.14 per Egyptian pound?

A) $12,000
B) $2,100
C) $107,143
D) $15,000
E) $3,148