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If a Basket of Goods in the United States Costs

Question 35

Multiple Choice

If a basket of goods in the United States costs $1,000, and the same basket of goods in Japan costs ¥125,000, then for PPP to exist, $1 should trade for ____ Japanese yen.


A) 4
B) 50
C) 125
D) 125,000

Correct Answer:

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