The exchange rate is CAD 1.00 USD 0.75 and a cup of regular coffee at the McDonald's in Niagara Falk, Ontario costs $2 CAD. PPP suggests that the price of a cup of regular coffee at the McDonald's in Niagara Falls, New York should be Select one: A. USD 2.00. B. USD 0.75. C. USD 1.50. D. USD 1.33. E. US$ 2.67.

The exchange rate is CAD 1.00 USD 0.75 and a cup of regular coffee at the McDonald's in Niagara Falk, Ontario costs $2 CAD. PPP suggests that the price of a cup of regular coffee at the McDonald's in Niagara Falls, New York should be Select one: A. USD 2.00. B. USD 0.75. C. USD 1.50. D. USD 1.33. E. US$ 2.67.

Brief Principles of Macroeconomics (MindTap Course List)

8th Edition

ISBN:9781337091985

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter13: Open-economy Macroeconomics: Basic Concepts

Section: Chapter Questions

Problem 5CQQ

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