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Assume That US$1 Will Buy 110 Yen

Question 44

Multiple Choice

Assume that US$1 will buy 110 yen. If absolute purchasing power parity exists between the United States and Japan, and if the Big Mac meal costs $5 in the United States, it will cost _____ in Japan.


A) 55 yen
B) 22 yen
C) 220 yen
D) 550 yen

Correct Answer:

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