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If Purchasing Power Parity Holds,a Bushel of Rice Costs $10

Question 21

Multiple Choice

If purchasing power parity holds,a bushel of rice costs $10 in the U.S. ,and the nominal exchange rate is 2 Thai bhat per dollar,what is the price of rice in Thailand?


A) 20 bhat
B) 10 bhat
C) 5 bhat
D) 2 bhat

Correct Answer:

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