In the presence of purchasing-power parity, if one dollar exchanges for two British pounds and if a VCR costs $400 in the United States, then in Great Britain the VCR should cost
A) 200 pounds.
B) 400 pounds.
C) 600 pounds.
D) 800 pounds.

Question

Quizplus · Accepted Answer

The Answer of In the presence of purchasing-power parity, if one dollar exchanges for two British pounds and if a VCR costs $400 in the United States, then in Great Britain the VCR should cost
A) 200 pounds.
B) 400 pounds.
C) 600 pounds.
D) 800 pounds.

In the Presence of Purchasing-Power Parity, If One Dollar Exchanges