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Suppose a Car Sells for $20,000 in the United States

question 182

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Suppose a car sells for $20,000 in the United States while the same car sells for 2.4 million yen in Japan. Which exchange rate is consistent with purchasing power parity?


Definitions:

Too

A word indicating an excessive amount or degree of something.

Two

The numerical value representing a quantity equal to one plus one, often considered in contexts of comparison or difference.

Drafting

The preliminary stage of writing or drawing up documents, plans, designs, or legislation before they are finalized.

Research

the systematic investigation into and study of materials and sources in order to establish facts and reach new conclusions.

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