Multiple Choice
Suppose a car sells for $20,000 in the United States while the same car sells for 2.4 million yen in Japan. Which exchange rate is consistent with purchasing power parity?
A) ¥120 for US$1.
B) ¥ for US$120.
C) ¥20 for US$120.
D) ¥1 for US$20.
Correct Answer:
Verified
Correct Answer:
Verified
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