Assuming the Theory of Purchasing Power Parity Holds, If the Exchange

question 62

Multiple Choice

Assuming the theory of purchasing power parity holds, if the exchange rate between the United States and Japan is $0.011 per yen ¥) , then how much does a $400 Microsoft Xbox cost in Japanese yen?

• A) ¥27,273
• B) ¥31,818
• C) ¥36,364
• D) ¥44,000
• E) ¥46,467

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Definitions:

Adrenal Glands

Small glands located on top of each kidney that produce hormones such as adrenaline and cortisol, which help control heart rate, blood pressure, and other important bodily functions.

Cortisol

A steroid hormone produced by the adrenal glands, often released in response to stress and a key component in the body's stress response system.

Melatonin

A hormone produced by the pineal gland that helps regulate sleep-wake cycles.

Telomeres

Protective caps at the end of chromosomes that shorten with each cell division, associated with aging.