A golf club costs $100 in the United States. The same club costs AU$143 in Australia. Assume that purchasing power parity holds. What is the exchange rate between the U.S. and Australian dollars?
A) AU$1 = $1.43 U.S.
B) AU$1 = $1.25 U.S.
C) AU$1 = $0.6993 U.S.
D) AU$1 = $0.7752U.S.
Correct Answer:
Verified
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