Multiple Choice
Suppose the price of a standard pair of sport shoes is €40 in Spain and $75 in Canada,and the current exchange rate is 0.75 euro for one dollar.What is the purchasing-power parity exchange rate of the dollar?
A) 0.40 euro/dollar
B) 0.53 euro/dollar
C) 0.75 euro/dollar
D) 1.53 euro/dollar
Correct Answer:
Verified
Correct Answer:
Verified
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