Assume that a Chrysler automobile sells for $15,000 in the United States and that the exchange rate is $1 = €1.3 . For purchasing power parity to hold, the same car should sell in Germany for:

a. €15,000.
b. €11,538.
c. €19,500.
d. €1,538.
e. €15,500.


c

Economics

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An effective way in which patents allow manufacturers to prevent the entry of new firms into the industry is through

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