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The Price of Gold Is $300 Per Ounce in New

Question 95

Multiple Choice

The price of gold is $300 per ounce in New York and 435 Canadian dollars per ounce in Toronto, Canada. If the law of one price holds for gold, the nominal exchange rate is ________ Canadian dollars per U.S. dollar.


A) 0.333
B) 0.690
C) 1
D) 1.45

Correct Answer:

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