Multiple Choice
The price of a commodity in the US is USD2.54, while the price of the same commodity in Australia is AUD3.00 and the AUD/USD exchange rate is 1.8769. What is the Australian dollar price of the commodity compatible with the derivation of PPP?
A) AUD2.54
B) AUD3.00
C) AUD4.77
D) AUD1.60
Correct Answer:
Verified
Correct Answer:
Verified
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