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Suppose That Walkman Stereos Sell in the U

Question 51

Essay

Suppose that Walkman stereos sell in the U.S. for $40, but sell in Germany for DM 87.5. Under the law of one price, what must be the number of dollars needed to purchase a D mark?

Correct Answer:

verifed

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PUS = SDM (t). pGER (t)
$40...

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