Suppose that the price of a ton of coal in France is 1,000 euros while it is $200 in Canada.If the purchasing power parity theory holds true,what would you expect the exchange rate to be?
A) $1 Canadian =.2 euros.
B) $1 Canadian =.5 euros.
C) $1 Canadian = 5 euros.
D) $1 Canadian = 2 euros.
Correct Answer:
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