Multiple Choice
The nominal exchange rate is about 2 Aruban florin per dollar. If a basket of goods in Canada costs $40, how many florins must a basket of goods in Aruba cost for purchasing-power parity to hold?
A) 20 florins
B) 40 florins
C) 80 florins
D) 100 florins
Correct Answer:
Verified
Correct Answer:
Verified
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