Suppose that $1 U.S. costs $1.50 Canadian. If in St. Louis a CD costs $10 U.S. and in Montreal it costs $15 Canadian, then .
A) Canadians will buy CDs in St. Louis
B) Virgin Records will have an incentive to build more stores in North America
C) Americans will buy CDs in Montreal
D) purchasing power parity exists
Correct Answer:
Verified
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