If a cup of coffee costs 2 euros in Paris and $6 in New York and purchasing-power

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If a cup of coffee costs 2 euros in Paris and $6 in New York and purchasing-power parity holds, what is the exchange rate?

a. 1/4 euro per dollar

b. 1/3 euro per dollar

c. 3 euros per dollar

d. 4 euros per dollar

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Brief Principles Of Macroeconomics

ISBN: 9780357133507

9th Edition

Authors: N. Gregory Mankiw

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Question Posted: Feb 28, 2024 04:01 AM

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If a cup of coffee costs 2 euros in Paris and $6 in New York and purchasing-power

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Brief Principles Of Macroeconomics

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