If the theory of purchasing power parity holds,then how much does an oil change for a Toyota Prius cost in Japan if the same oil change for the same Toyota Prius costs $29.95 in the United States and the exchange rate is $0.011 per Japanese yen?
A) It cannot be determined with the given information because oil changes are not tradable.
B) 2,723 yen
C) 0.33 yen
D) 272 yen
E) 3.29 yen
Correct Answer:
Verified
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