4. A meal at a McDonalds restaurant in New York costs $8. The identical meal at a...

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4. A meal at a McDonald’s restaurant in New York costs $8. The identical meal at a McDonald’s restaurant in London costs £4.

According to the purchasing-power-parity theory of exchange rates, the exchange rate between U.S. dollars and British pounds should tend to move toward: LO41.3

a. $2 = £1.

b. $1 = £2.

c. $4 = £1.

d. $1 = £4.

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Economics

ISBN: 9781259723223

21st Edition

Authors: Campbell McConnell, Stanley Brue, Sean Flynn

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Question Posted: Sep 30, 2024 10:04 AM

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4. A meal at a McDonalds restaurant in New York costs $8. The identical meal at a...

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Economics

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