Scenario: Purchasing Power Parity A car costs $30,000 in the United States and the exchange rate is $1 = £0.50. The same car costs £12,000 in Britain. For there to be purchasing power parity, the nominal exchange rate for the dollar must be:

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The Answer of Scenario: Purchasing Power Parity A car costs $30,000 in the United States and the exchange rate is $1 = £0.50. The same car costs £12,000 in Britain. For there to be purchasing power parity, the nominal exchange rate for the dollar must be:

Scenario: Purchasing Power Parity a Car Costs $30,000 in the United