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A bottle of French wine costs 45 euros in Paris. According to the purchasing power parity theory, what would the bottle sell for in New
A bottle of French wine costs 45 euros in Paris. According to the purchasing power parity theory, what would the bottle sell for in New York if it costs the New York company $4 per bottle to transport the wine to the United States? Assume the exchange rate is $1.80 per euro.
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