According to Purchasing-Power Parity Theory,if the Same Fast-Food Hamburger Costs

question 21

Multiple Choice

According to purchasing-power parity theory,if the same fast-food hamburger costs $2.50 in Canada and 5 euros in France,what should the nominal exchange rate be?

• A) 1 / 4 euros per dollar
• B) 1 / 2 euro per dollar
• C) 1 euro per dollar
• D) 2 euro per dollar

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Definitions:

Complex Number

A value represented as a + bi, where a and b are real numbers, and i is the unit of imaginary numbers.

Complex Conjugate

The complex conjugate of a complex number is the number with an equal real part and an imaginary part equal in magnitude but opposite in sign.

Simplify

The process of altering an expression to make it easier to understand or work with, often by reducing its complexity.

Solution

The specific value or group of values that meet the criteria of an equation, inequality, or a collection of equations.