The Nominal Exchange Rate Is About 2 Aruban Florin Per

question 175

Multiple Choice

The nominal exchange rate is about 2 Aruban florin 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)100 florins

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