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What would be the price of the same pair of shoes in Germany

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Reference no: EM132792203

Question - Assume that a pair of Nike running shoes costs 40 British pounds in the U.K. If the absolute purchasing power parity holds, and the exchange rate is 0.65 British pounds per Euro, what would be the price of the same pair of shoes in Germany?

A. 40.65 Euro

B. 40 Euro

C. 61.54 Euro

D. 26 Euro

Reference no: EM132792203

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