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Suppose a Swiss watch costs 100 francs in Switzerland and $200 in the United States and the law of one price occurs (purchasing power party

Suppose a Swiss watch costs 100 francs in Switzerland and $200 in the United States and the law of one price occurs (purchasing power party or PPP, then the equilibrium exchange rate between the franc and the dollar is:

a. 2 francs per dollar

b. 2 dollars per franc

c. $100 per franc

d. $200 per franc

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