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Gold Is 2,100 Pesos Per Ounce in Mexico

Question 196

Multiple Choice

Gold is 2,100 pesos per ounce in Mexico.The exchange rate between Canada and Mexico is 5 Mexican pesos per dollar.According to the purchasing power parity theory,the price of gold in Canada is _________ dollars per ounce.


A) 37.5
B) 420
C) 1,250
D) 2,400
E) 19,200

Correct Answer:

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