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The Table Below Shows Indexes for the Price Levels for Canada

question 6

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The table below shows indexes for the price levels for Canada and the United States and the nominal exchange rate between their currencies (the Canadian-dollar price of 1 U.S.dollar) .
The table below shows indexes for the price levels for Canada and the United States and the nominal exchange rate between their currencies (the Canadian-dollar price of 1 U.S.dollar) .    TABLE 34-2 -Refer to Table 34-2.According to the theory of purchasing power parity (PPP) ,the Canada-US exchange rate in 2008 should have been A) 115/122 = 0.94. B) 1.15,the actual exchange rate that year. C) (122 × 115) /100 = 140.3. D) 122,the price level in Canada that year. E) 122/115 = 1.06. TABLE 34-2
-Refer to Table 34-2.According to the theory of purchasing power parity (PPP) ,the Canada-US exchange rate in 2008 should have been


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