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While shopping in the Mexican market, you find that limes cost 12 pesos each. You remember that back home they cost 60 cents each. If

While shopping in the Mexican market, you find that limes cost 12 pesos each. You remember that back home they cost 60 cents each. If the Purchasing Power Parity Theory holds, the rate of exchange is:

a. 5 pesos/dollar or 20 cents/peso

b. 20 pesos/dollar or 5 cents/peso

c. 1 peso/dollar or 15 cents/peso

d. 80 pesos/dollar or 1.25 cents/peso

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