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Assume a canned soft drink costs $1 in the U.S. and $1.30 in Canada. At the same time, the currency per U.S. dollar is Can$1.30.
Assume a canned soft drink costs $1 in the U.S. and $1.30 in Canada. At the same time, the currency per U.S. dollar is Can$1.30. Which one of the following conditions exists in this situation? Absolute purchasing power parity Interest rate parity Relative purchasing power parity Translation exposure Equal spot and forward rates
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