A box of chocolate candy costs 28.80 Swiss francs in Switzerland and $20 in the United States. Assuming that purchasing power parity (PPP) holds, what is the current exchange rate?
A) 1 u.s. dollar equals 0.69 swiss francs
B) 1 u.s. dollar equals 0.85 swiss francs
C) 1 u.s. dollar equals 1.21 swiss francs
D) 1 u.s. dollar equals 1.29 swiss francs
E) 1 u.s. dollar equals 1.44 swiss francs
Correct Answer:
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