Multiple Choice
Suppose an MP3 player sells for $75 in the United States and for 50 pounds in Britain. Which exchange rate is consistent with purchasing power parity?
A) £1.50 for US$1
B) £1 for US$1.50
C) £3 for US$1
D) £1 for US$0.67
Correct Answer:
Verified
Correct Answer:
Verified
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