Multiple Choice
Suppose purchasing power parity (PPP) depends only on hamburgers. The exchange rate is C$1.00 = US$0.80 and hamburger prices are US$2.00 in the U.S. PPP suggests that the price of a hamburger in Canada should be
A) C$ 2.50.
B) C$ 2.00.
C) C$ 1.60.
D) C$ 1.25.
E) C$ 0.80.
Correct Answer:
Verified
Correct Answer:
Verified
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