Suppose Absolute Purchasing Power Parity Holds

question 269

Multiple Choice

Suppose absolute purchasing power parity holds. The exchange rate quoted in The National Post for Indian rupees 0.02312. If an automobile costs $35,000 in Canada, how much should the same car cost in India?

• A) Rs 442
• B) Rs 809
• C) Rs 822
• D) Rs 65,293
• E) Rs 1,513,841

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Definitions:

Phillis Wheatley

The first African American woman to publish a book of poetry, hailing from the 18th century, recognized for her literary contributions despite being enslaved.

Poetry

A form of literature utilizing aesthetic and rhythmic qualities of language to evoke meanings beyond prose's literal interpretation.

White Virginians

Refers to the Caucasian inhabitants of Virginia, especially significant in historical contexts relating to their roles in the colonial, antebellum, and Civil War periods of the United States.

Racial Slavery

The practice of enslavement based primarily on race, notably the African slave trade by Europeans and the enslavement of Africans and their descendants in the Americas.