If Purchasing Power Parity Holds and the Nominal Exchange Rate

question 2

Multiple Choice

If purchasing power parity holds and the nominal exchange rate is £1 for $2,then an iPhone that cost $450 in New York should cost _____ in London.

• A) £225
• B) £450
• C) £675
• D) £900

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Definitions:

Sampling Technique

The method or process used to select samples from a population for research purposes.

Judgmental Sampling

A sampling technique where the researcher selects sample members based on their own judgment about which ones will be most representative or informative.

Chain Referral

A sampling method where existing study subjects recruit future subjects from among their acquaintances.

Quota Sampling

a market research technique that involves selectively collecting samples from a specific subset of a population, ensuring representation based on characteristics.