4249EconomicsMedium
IF when cost $4 per bushel in the United States and 2 pounds per bushel in Great Britain then in the presence of purchasing power parity the exchange rate should be?
A$50 per pound
B$1.00 per pound
C$8.00 per pound
D$2.00 per pound
Correct answer
D. $2.00 per pound
Explanation
The correct answer is $2.00 per pound.