Multiple Choice
Suppose a cup of coffee is €1.50 in Germany and R0.50 in SA.If purchasing power parity holds, what is the nominal exchange rate between euros and rands?
A) €0.33 per rand.
B) €1.50 per rand.
C) €0.75 per rand.
D) €3 per rand.
Correct Answer:
Verified
Correct Answer:
Verified
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