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If Purchasing-Power Parity Holds, Which of the Following Is the Implication

Question 103

Multiple Choice

If purchasing-power parity holds, which of the following is the implication for the Canadian dollar?


A) The Canadian dollar will buy more goods in foreign countries than in Canada.
B) The Canadian dollar will buy as many goods in foreign countries as it does in Canada.
C) The Canadian dollar will buy fewer goods in foreign countries than it does in Canada.
D) The amount of goods that the Canadian dollar buys is not determined by purchasing power parity.

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