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Question 254

Multiple Choice

On www.yodobashi.com, you can buy a Canon EOS camera for 298,000 yen. The same camera costs $2,700 on www.calumetphoto.com. If the exchange rate is ________ yen per dollar, we can determine ________ for this camera.


A) 92; interest rate parity doesn't occur
B) 92; purchasing power parity occurs
C) 110; interest rate parity occurs
D) 110; purchasing power parity occurs

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