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The Same Laptop Computer Cost $2,000 in the United States

Question 86

Essay

The same laptop computer cost $2,000 in the United States, 220,000 Japanese yen, £1,300
British pounds, and €1900 in Germany. If the law of one price holds, what are the yen/$; £/$ and
€/$ exchange rates?

Correct Answer:

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If the law of one price holds ...

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