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In the Presence of Purchasing-Power Parity,if One Dollar Exchanges for 2

Question 27

Multiple Choice

In the presence of purchasing-power parity,if one dollar exchanges for 2 British pounds and if a VCR costs $400 in the United States,then in Great Britain the VCR should cost:


A) 200 pounds
B) 400 pounds
C) 600 pounds
D) 800 pounds

Correct Answer:

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