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If Relative Purchasing Power Parity holds, US dollar inflation is 5 percent, and Mexican peso inflation is 12 percent, which of the following is the

If Relative Purchasing Power Parity holds, US dollar inflation is 5 percent, and Mexican peso inflation is 12 percent, which of the following is the best answer?

a.

The cost in US dollars for American tourists to Mexico will increase at 5 percent

b.

The cost in US dollars for American tourists to Mexico will increase at 12 percent

c.

The cost in US dollars for American tourists to Mexico will increase at 17 percent

d.

The cost in Mexican pesos for Mexican tourists to the US will increase at 5 percent

e.

The cost in Mexican pesos for Mexican tourists to the US will increase at 12 percent

f.

The cost in in Mexican pesos for Mexican tourists to the US will increase at 17 percent

g.

c and f

h.

a and e

i.

b and d

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