Purchasing power parity implies that the exchange rate

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Reference no: EM13935148

A steak dinner in the U.S. costs $25, while the exact meal costs 300 pesos across the border in Mexico. Purchasing power parity implies that the Peso/$ exchange rate is: (Please explain the calculation.)

a. P12.50/$1

b. P12.75/$1

c. P11.50/$1

d. P11.25/$1

e. P12.00/$1

Reference no: EM13935148

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