Assume $1 can buy you either ¥113.25 or £.7708. If a TV in London costs £995, what will that identical TV cost in Tokyo if absolute purchasing power parity exists?
A) ¥86,857
B) ¥60,554
C) ¥146,191
D) ¥161,855
E) ¥163,542
Correct Answer:
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