Multiple Choice
Suppose purchasing power parity holds.If the price level in the United States is 100 dollars per good and the price level in Japan is 250 yen per good,then the nominal exchange rate is ________ yen per dollar.
A) 0) 25
B) 0) 4
C) 2) 5
D) 4) 0
Correct Answer:
Verified
Correct Answer:
Verified
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