Question
A golf club costs $112 in the United States. The same club costs AU$78 in Australia. Assume that purchasing power parity holds. What is the
A golf club costs $112 in the United States. The same club costs AU$78 in Australia. Assume that purchasing power parity holds. What is the exchange rate between the U.S. and Australian dollars?
Multiple Choice
$1 U.S. = AU$1.37
AU$1 = $1.44 U.S.
AU$1 = $1.37 U.S.
$1 U.S. = AU$1.44
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Multinational Business Finance
Authors: David K. Eiteman, Arthur I. Stonehill, Michael H. Moffett
13th edition
132743469, 978-0132743464
