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If Purchasing-Power Parity Holds, and a Tonne of Rice Costs

Question 59

Multiple Choice

If purchasing-power parity holds, and a tonne of rice costs $200 in Australia and 15 000 yen in Japan, then the nominal exchange rate is:

A) 300 yen/$
B) 30 $/yen
C) 75 yen/$
D) 750 yen/$

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