Suppose a Starbucks tall latte costs $4.00 in the United States,5.00 euros in the euro area and $2.50 Australian dollars in Australia.Nominal exchange rates are .80 euros per dollar and 1.4 Australian dollars per U.S.dollar.Where does purchasing-power parity hold?
A)both the euro area and Australia
B)the euro area but not Australia
C)Australia but not the euro area
D)neither the euro area or Australia

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The Answer of Suppose a Starbucks tall latte costs $4.00 in the United States,5.00 euros in the euro area and $2.50 Australian dollars in Australia.Nominal exchange rates are .80 euros per dollar and 1.4 Australian dollars per U.S.dollar.Where does purchasing-power parity hold?
A)both the euro area and Australia
B)the euro area but not Australia
C)Australia but not the euro area
D)neither the euro area or Australia

Suppose a Starbucks Tall Latte Costs $4