Suppose Absolute Purchasing Power Parity Holds

question 282

Multiple Choice

Suppose absolute purchasing power parity holds. The cost of one pound of oranges in Mexico is Ps31.07 and in Canada it is $3.25. What is the exchange rate?

• A) Ps0.04 per $1
• B) Ps0.10 per $1
• C) Ps8.10 per $1
• D) Ps9.56 per $1
• E) Ps9.86 per $1

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Definitions:

Public Places

Areas that are open and accessible to all members of a community, including parks, streets, and public buildings.

Informal

Lacking official procedures or rules; casual or unofficial in nature.

Contact Cultures

Societies or communities that prefer close physical proximity and touch as part of social interactions.

Personal Space

The physical area surrounding an individual that they regard as psychologically theirs, comfort levels with proximity vary across cultures and individuals.