Suppose the Price of Gold Is $300 Per Ounce in the United

Question 89
Multiple Choice

Suppose the price of gold is $300 per ounce in the United States and 2,400 pesos per ounce in Mexico.If purchasing power parity holds then,if the price of oil is 200 pesos per barrel in Mexico,the price of oil is ______ per barrel in the United States. A)$1,600 B)$80 C)$36 D)$25