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If Purchasing-Power Parity Held, If a Big Mac Costs $2

Question 17

Multiple Choice

If purchasing-power parity held, if a Big Mac costs $2 in the United States, and if 10 Mexican pesos trade for $1 dollar, then a Big Mac in Cancun, Mexico, should cost:


A) 2 pesos.
B) 5 pesos.
C) 10 pesos.
D) 20 pesos.

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