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Question
If a basket of goods costs $100 in the United States and 120 in Europe, purchasing power parity theory predicts that the dollar/euro exchange rate should be _____.
A. $1 = 1.20
B. $1 = 1
C. $1 = 0.80
D. $1 = 0.90
E. $1 = 1.10
Answer
This answer is hidden. It contains 239 characters.
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