If the nominal exchange rate of the Swiss Franc to Dollar is 0.95 from the Swiss point of view and the price level is 95 in Switzerland, what is the price level in the US that would make PPP hold? А. Between 85 to 94 В. Between 95 to 100 С. Between 101 and 105 D. Between 106 and 115

Principles of Economics (MindTap Course List)
8th Edition
ISBN:9781305585126
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter31: Open-Economy Macroeconomics: Basic Concepts
Section31.2: The Price For International transaction: Real And Nominal Exchange Rate
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If the nominal exchange rate of the Swiss Franc to Dollar is 0.95 from the Swiss point of view and the price level is 95 in
Switzerland, what is the price level in the US that would make PPP hold?
Between 85 to 94
A.
В.
Between 101 and 105
Between 95 to 100
С.
D.
Between 106 and 115
Transcribed Image Text:If the nominal exchange rate of the Swiss Franc to Dollar is 0.95 from the Swiss point of view and the price level is 95 in Switzerland, what is the price level in the US that would make PPP hold? Between 85 to 94 A. В. Between 101 and 105 Between 95 to 100 С. D. Between 106 and 115
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