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If Purchasing-Power Parity Holds,the Price Level in the U

Question 48

Multiple Choice

If purchasing-power parity holds,the price level in the U.S.is 140,and the price level in Canada is 120,which of the following is true?


A) the real exchange rate is 120/140.
B) the real exchange rate is 140/120.
C) the nominal exchange rate is 120/140
D) the nominal exchange rate is 140/120

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