Currencies-U.S. dollar foreign-exchange rates. Country/currency in US$ per USS Chinese Yuan 0.1466 6.8213 Indian Rupee 0.0201...

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Currencies-U.S. dollar foreign-exchange rates. Country/currency in US$ per USS Chinese Yuan 0.1466 6.8213 Indian Rupee 0.0201

Answer 1

Answer #1

Purchasing power parity states that the price of a similar good will be same in two countries

Since the price in dollar terms Ia different, the purchasing power parity does not hold.

The answer is a. Purchasing power parity does not hold, and big macs are relatively expensive in Boston

Answer 2

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