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Suppose absolute purchasing power parity holds. The exchange rate between British pounds and US dollars is British pound 0 . 7 5 per dollar. If

Suppose absolute purchasing power parity holds. The exchange rate between British pounds and US dollars is British pound 0.75 per dollar. If a stereo costs $5000 in the United States, how much should it cost in Britain?
A)2,620 British pound
B)3,497 British pound
C)3,750 British pound
D)4,995 British pound
E)7,136 British pound
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