(Table: Exchange Rates and Prices) Suppose a computer costs $500 in the United States. If PPP were to hold at the given nominal exchange rate, then the price of a computer in Mexico would be _____ pesos.
A) 500
B) 50
C) 5,000
D) 0.02

Question

(Table: Exchange Rates and Prices) Suppose a computer costs $500 in the United States. If PPP were to hold at the given nominal exchange rate, then the price of a computer in Mexico would be _____ pesos. 
A) 500 
B) 50 
C) 5,000 
D) 0.02

Quizplus · Accepted Answer

The Answer of (Table: Exchange Rates and Prices) Suppose a computer costs $500 in the United States. If PPP were to hold at the given nominal exchange rate, then the price of a computer in Mexico would be _____ pesos. 
A) 500 
B) 50 
C) 5,000 
D) 0.02

(Table: Exchange Rates and Prices) Suppose a Computer Costs $500