Question
Suppose that the price of a ton of coal in France is 1,000 euros while it is $200 in Canada. If the purchasing power
Suppose that the price of a ton of coal in France is 1,000 euros while it is $200 in Canada. If the purchasing power parity theory holds true, what would you expect the exchange rate to be? O a. $1 Canadian = 5 euros. O b. $1 Canadian = .5 euros. = .2 euros. O c. $1 Canadian O d. $1 Canadian = 2 euros.
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