Suppose absolute purchasing power parity holds. The cost of one pound of oranges in Mexico is Ps31.07 and in Canada it is $3.25. What is the exchange rate?
A) Ps0.04 per $1
B) Ps0.10 per $1
C) Ps8.10 per $1
D) Ps9.56 per $1
E) Ps9.86 per $1
Correct Answer:
Verified
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