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5. A can of lemonade is priced at 0,75EUR in Europe and 12 pesos in Mexico. What would the peso-euro exchange rate be if PPP
5. A can of lemonade is priced at 0,75EUR in Europe and 12 pesos in Mexico. What would the peso-euro exchange rate be if PPP holds? If a monetary expansion caused all prices in Mexico to double, so that lemonade rose to 24 pesos, what would happen to the peso-euro exchange rate?
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