If a Certain Automotive Part Can Be Purchased in Mexico

Multiple Choice

If a certain automotive part can be purchased in Mexico for 32 pesos or in the United States for $5.25, and if the nominal exchange rate is 8 pesos per U.S. dollar, then the automotive part:

A) is more expensive in Mexico.
B) is more expensive in the United States.
C) is less expensive in the United States.
D) costs the same in Mexico and the United States.