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The Price of Gold Is $300 Per Ounce in New

Question 147

Multiple Choice

The price of gold is $300 per ounce in New York and 2,550 pesos per ounce in Mexico City. If the law of one price holds for gold, the nominal exchange rate is ________ pesos per U.S. dollar.


A) 0.118
B) 1.18
C) 8.5
D) 85.5

Correct Answer:

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