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2. Which of the following true facts demonstrates that the purchasing power parity theorem does not hold for hair cuts? a. When adjusted for the
2. Which of the following true facts demonstrates that the purchasing power parity theorem does not hold for hair cuts? a. When adjusted for the quality of the haircut, haircuts in Mexico and in Norway have the same price. b. the payment a Mexican barber receives for a haircut can purchase more goods in Mexico that can be purchase in Norway for the amount paid to a Norwegian barber for a hair cut. c. the price of a hair cut in Mexico in pesos is higher than the price of a haircut in Norway in Norwegian krone. d. A given quantity of U.S. dollars can by more haircuts in Mexico than it can in Norway
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