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If Purchasing Power Parity Holds, a Bushel of Rice Costs

Question 128

Multiple Choice

If purchasing power parity holds, a bushel of rice costs $10 in the U.S., and the nominal exchange rate is 40 Thai baht per dollar, what is the price of rice in Thailand?


A) 400 baht
B) 200 baht
C) 100 baht
D) 40 baht

Correct Answer:

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