Multiple Choice
Suppose the nominal exchange rate is 95 yen / dollar,the price of beef in Japan is ¥1200,and the price of beef in Canada is $14.Using the purchasing-power parity theory,approximately how much should you expect the exchange rate to change by?
A) -9 yen / dollar
B) -1.1 yen / dollar
C) 1.1 yen / dollar
D) 9 yen / dollar
Correct Answer:
Verified
Correct Answer:
Verified
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