Suppose a Starbucks Tall Latte Costs $4

question 60

Multiple Choice

Suppose a Starbucks tall latte costs $4.00 in the United States,5.00 euros in the euro area and $2.50 Australian dollars in Australia.Nominal exchange rates are .80 euros per dollar and 1.4 Australian dollars per U.S.dollar.Where does purchasing-power parity hold?

• A)both the euro area and Australia
• B)the euro area but not Australia
• C)Australia but not the euro area
• D)neither the euro area or Australia

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Definitions:

Ecological Footprint

A measure of human demand on Earth's ecosystems, representing the amount of natural capital used by a person or community.

Environmental Justice

A movement aimed at addressing the fair distribution of environmental benefits and burdens across all communities, regardless of race or socio-economic status.

Demography

The statistical study of populations, including the structure, distribution, and trends of humans within a society.

Population Dynamics

The study of short- and long-term changes in the number, individual compositions, and distributions of populations, and the biological and environmental processes influencing those changes.