Question: MXN / USD . 0 4 ( point 0 4 ) in nominal currency exchange rate terms. Panda Industries can purchase the same GE generator
MXNUSD point in nominal currency exchange rate terms. "Panda Industries" can purchase the same GE generator in the US for $ or in Mexico for Mexican Pesos. Based on what we learned in class about purchasing power parity, where is Panda Industries better off purchasing the generator? In the US or in Mexico?
A
In the US
B
We can't answer this question because we need to know what the real USDMXN currency exchange rate is
C
We don't have enough information to answer this question.
D
In Mexico.
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