If a Starbucks Tall-Latte Cost $2

Multiple Choice

If a Starbucks tall-latte cost $2.80 in the United States and 2.93 euros in the Euro area,then purchasing-power parity implies the nominal exchange rate is how many euros per dollar?

A) .956 If the exchange rate is less than this,it costs more dollars to buy a tall-latte in the U.S.than in the Euro area.
B) .956 If the exchange rate is less than this,it costs fewer dollars to buy a tall-latte in the U.S.then in the Euro area.
C) 1.046 If the exchange rate is less than this,it costs more dollars to buy a tall-latte in the U.S.than in the Euro area.
D) 1.046 If the exchange rate is less than this,it costs fewer dollars to buy a tall-latte in the U.S.than in the Euro area.