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If Wisconsin Cheddar Cheese Sells for $3

Question 116

Multiple Choice

If Wisconsin cheddar cheese sells for $3.00 per pound in the United States and for 27.90 pesos in Mexico, what is the exchange rate between the dollar and the peso (assuming PPP holds) ?


A) $1 = 2.79 pesos
B) $1 = 7.90 pesos
C) $1 = 9.30 pesos
D) $1 = 27.90 pesos

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