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A Basket of Goods Costs $800 in the U

Question 10

Multiple Choice

A basket of goods costs $800 in the U.S.In Belgium the basket of goods costs 640 euros and the exchange rate is .80 euros per U.S.dollar.In Japan the basket of goods costs 90,000 yen and the exchange rate is 90 yen per dollar.Which country has purchasing-power parity with the U.S.?


A) both Belgium and Japan
B) Belgium but not Japan
C) Japan but not Belgium
D) neither Belgium nor Japan

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