Suppose a Basket of Internationally Traded Goods That Sells for $8,000

Suppose a basket of internationally traded goods that sells for $8,000 in the United States sells for €10,000 in the euro zone. According to the purchasing power parity theory, the equilibrium exchange rate should be equal to _____

A) $2.50 per euro.
B) $1.50 per euro.
C) $1.25 per euro.
D) $1.00 per euro.
E) $0.80 per euro.