A new sweater costs 1,449.95 Russian rubles.How much will the identical sweater cost in Euros if absolute purchasing power parity exists and the following exchange rates apply? $$\begin{array} { | l | l | l | }
\hline \text { Country } & \text { U.S. \$ Equivalent } & \text { Currency per U.S. \$ } \
\hline \text { Russia } & ? & 29.0190 \
\hline \text { Euro } & 1.2159 & ? \
\hline
\end{array}$$

Question

A new sweater costs 1,449.95 Russian rubles.How much will the identical sweater cost in Euros if absolute purchasing power parity exists and the following exchange rates apply? $$\begin{array} { | l | l | l | } 
\hline \text { Country } & \text { U.S. \$ Equivalent } & \text { Currency per U.S. \$ } \
\hline \text { Russia } & ? & 29.0190 \
\hline \text { Euro } & 1.2159 & ? \
\hline
\end{array}$$

Quizplus · Accepted Answer

The correct answer is A because 1,449.95 Russian rubles / 29.0190 rubles per U.S. $ = 49.95 U.S. $. 49.95 U.S. $ * 1.2159 Euros per U.S. $ = 60.75 Euros.

A New Sweater Costs 1,449 A)€4109 B)€43

A New Sweater Costs 1,449 A)€4109
B)€43