Use the Following to Answer Questions

question 109

Multiple Choice

Use the following to answer questions :
Scenario: Purchasing Power Parity
A car costs $30,000 in the United States and the exchange rate is $1 = £0.50. The same car costs £12,000 in Britain.
-(Scenario: Purchasing Power Parity) Look at the scenario Purchasing Power Parity. What is the purchasing power parity of the pound?

• A)$5
• B)$2.50
• C)$1.25
• D)$0.80

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