A Product Sells for $750 in the United States

question 47

Multiple Choice

A product sells for $750 in the United States. The exchange rate is such that $1 equals 1.65 Swiss francs. If purchasing power parity (PPP) holds, what is the price of the product in Switzerland?

• A) 123.75 Swiss francs
• B) 454.55 Swiss francs
• C) 750.00 Swiss francs
• D) 1,237.50 Swiss francs
• E) 1,650.00 Swiss francs

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Definitions:

Gardenias

Fragrant white or yellow flowers that belong to the coffee family, often used in perfumery and gardening.

Emotion

A complex psychological state involving an individual's state of mind, physiological changes, and an outward expression or behavior.

Homeostasis

The tendency of a biological system to maintain stability while adjusting to conditions that are optimal for survival.

Hypothalamus

An essential part of the brain's limbic system involved in many functions, including releasing hormones and regulating body temperature.