Suppose that $1 U.S.costs $1.50 Canadian.If in St.Louis a CD costs $10 U.S.and in Montreal it costs $15 Canadian,then ________.
A) purchasing power parity exists
B) Canadians will buy CDs in St. Louis
C) Americans will buy CDs in Montreal
D) Virgin Records will have an incentive to build more stores in North America
Correct Answer:
Verified
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