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A Fancy New Coat Costs SKr989

Question 46

Multiple Choice

A fancy new coat costs SKr989.90.Assume you can exchange SKr1 for $.1402 and €1 for $1.1806.How much will the identical coat cost in euros if absolute purchasing power parity exists?


A) €117.55
B) €144.88
C) €163.85
D) €211.99
E) €133.33

Correct Answer:

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