The table below shows indexes for the price levels for Canada and the United States and the nominal exchange rate between their currencies (the Canadian-dollar price of 1 U.S.dollar) .
TABLE 34-2
-Refer to Table 34-2.The value of Canada's purchasing power parity (PPP) exchange rate in 2011 was
A) 131/125 = 1.048.
B) 125/131 = 0.954.
C) 1.00,the actual exchange rate that year.
D) (131 × 125) /100 = 163.75.
E) 131,the price level in Canada that year.
Correct Answer:
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