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? Group of answer choices 1/3 euro per dollar 4 euros per dollar 3 euros per dollar 1/4 euro per dollar

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? Group of answer choices 1/3 euro per dollar 4 euros per dollar 3 euros per dollar 1/4 euro per dollar

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter36: Exchange Rates And Financial Links Between Countries

Section: Chapter Questions

Problem 11E

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Question

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?

Group of answer choices

1/3 euro per dollar

4 euros per dollar

3 euros per dollar

1/4 euro per dollar

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