Suppose Purchasing Power Parity (PPP) Depends Only on Hotel Rooms

question 54

True/False

Suppose purchasing power parity (PPP) depends only on hotel rooms. The exchange rate is C$1.00 = US$0.80 and a room at the Weston Hotel in Niagara Falls, New York costs US$200. PPP suggests that the price of a room at the Weston Hotel in Niagara Falls, Ontario should be C$250.

---

Definitions:

Major Depressive Disorder

A mental health condition marked by persistent sadness or loss of interest in activities, leading to significant impairment in daily life.

World Health Organization

A specialized agency of the United Nations responsible for international public health, founded in 1948 to promote and protect worldwide health.

Disability

A physical or mental condition that significantly impairs an individual's ability to perform one or more major life activities.

Bipolar Disorder

A mental disorder characterized by extreme mood swings, including periods of deep depression followed by times of excessively elevated or irritable mood (mania or hypomania).