If the price in Canada was C$50 and the price in Switzerland was SFr 100, absolute purchasing power parity would indicate that:
a. The nominal value of the Swiss franc should rise by 100%.
b. The nominal exchange rate should be equal to C$2/SFr.
c. The nominal value of the Canadian dollar should rise by 100%.
d. The nominal exchange rate should be equal to C$0.50/SFr.
e. None of the above.
.D
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a. forgo the transaction completely b. merge with its trading partner c. exchange "hostages" d. All the above
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A. reduced threefold. B. reduced by one-half. C. tripled. D. doubled.