Suppose we expected that PPP should hold between the United States and Canada. Assume that the exchange
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Suppose we expected that PPP should hold between the United States and Canada. Assume that the exchange rate between U.S. dollars and Canadian dollars is CAD1/ USD0.64. That is, one Canadian dollar will purchase USD0.64. If USD2.30 purchases one Big Mac in the United States, how much should a Big Mac cost in Canada?
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USD230 C...View the full answer
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VIKAS JAIN
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