A golf club costs $112 in the United States. The same club costs AU$78 in Australia. Assume that purchasing power parity holds. What is the exchange rate between the U.S. and Australian dollars?
A) $1 U.S. = AU$1.37
B) $1 U.S. = AU$1.44
C) AU$1 = $1.37 U.S.
D) AU$1 = $1.44 U.S.
Correct Answer:
Verified
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