If purchasing power parity holds and a basket of goods costs $300 in the U.S. and the same basket costs 450 manats in Azerbiajan, then what is the nominal exchange rate?
A)about .67 manats per dollar
B)1 manat per dollar
C)1.5 manats per dollar
D)about 1.67 manats per dollar

Question

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The Answer of If purchasing power parity holds and a basket of goods costs $300 in the U.S. and the same basket costs 450 manats in Azerbiajan, then what is the nominal exchange rate?
A)about .67 manats per dollar
B)1 manat per dollar
C)1.5 manats per dollar
D)about 1.67 manats per dollar

If Purchasing Power Parity Holds and a Basket of Goods