Suppose a Cup of Coffee Is €1

question 6

Multiple Choice

Suppose a cup of coffee is €1.50 in Germany and R0.50 in SA.If purchasing power parity holds, what is the nominal exchange rate between euros and rands?

• A)€0.33 per rand.
• B)€1.50 per rand.
• C)€0.75 per rand.
• D)€3 per rand.

---

Definitions:

Countershafts

Secondary shafts in a gearbox that carry gears of various sizes, affecting the gear ratio between the input and output shafts.

Allison TC10

A model of automatic transmission for commercial vehicles, offering fuel efficiency and durability, designed by Allison Transmission.

Input Torque

The amount of turning force applied to the input shaft of a mechanism or system, such as a gearbox, influencing its output torque and overall performance.

Caterpillar ADEM

A proprietary engine management system developed by Caterpillar for controlling and optimizing engine performance.