On HYPERLINK "http://www.yodobashi.com/" www.yodobashi.com, you can buy a Canon EOS camera for 298,000 yen. The same camera costs $2700 on HYPERLINK "http://www.calumetphoto.com/" www.calumetphoto.com. If the exchange rate is yen per dollar, we can determine for this camera.
A) 92; purchasing power parity occurs
B) 92; interest rate parity doesn't occur
C) 110; interest rate parity occurs
D) 110; purchasing power parity occurs
Correct Answer:
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