Multiple Choice
Suppose that the exchange value of the dollar equals two British pounds.If in San Francisco a computer costs $1,000 and in London it costs 2,000 pounds, then
A) British consumers will buy computers in San Francisco.
B) Americans will buy computers in London.
C) purchasing power parity prevails.
D) purchasing power parity does not prevail.
Correct Answer:
Verified
Correct Answer:
Verified
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