6. Suppose the price of a cup of coffee is $3 in Boston and 6 euros in...

Question:

6. Suppose the price of a cup of coffee is $3 in Boston and 6 euros in Berlin. According to the theory of purchasing power parity, the exchange rate is euros per dollar.

a. 1/3

b. 1/2

c. 2

d. 3

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Macroeconomics

ISBN: 9781319263904

11th Edition

Authors: N. Gregory Mankiw

Question Posted: