If Purchasing-Power Parity Holds, and a Tonne of Rice Costs

question 59

Multiple Choice

If purchasing-power parity holds, and a tonne of rice costs $200 in Australia and 15 000 yen in Japan, then the nominal exchange rate is:

• A)300 yen/$
• B)30 $/yen
• C)75 yen/$
• D)750 yen/$