The Nominal Exchange Rate Is About 3 Aruban Florins Per

question 162

Multiple Choice

The nominal exchange rate is about 3 Aruban florins per dollar.If a basket of goods in Canada costs $40,how many florins must a basket of goods in Aruba cost for purchasing-power parity to hold?

• A) 20 florins
• B) 40 florins
• C) 80 florins
• D) 120 florins

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