Question: [MUST SHOW WORK] Suppose Purchasing Power Parity (PPP) depends only on bagels. In Canada, a basket of bagels costs US$200, and the exchange rate is

[MUST SHOW WORK] Suppose Purchasing Power Parity (PPP) depends only on bagels. In Canada, a basket of bagels costs US$200, and the exchange rate is C$1.00 = US$0.80. According to PPP, the price of this basket in Canada should be ________. A. US$ 150. B. US$ 100. C. C$ 250. D. C$ 300. E. US$ 200

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