Question

Your favorite running shoes cost $91 in the U.S. while the identical shoes cost Can$114.50 in Canada. According to absolute purchasing power parity, what is the Can$/$ exchange rate

Answer 1

Can $1.2582 / US $1

Step-by-step explanation:

US $91 = Can $114.50

$1 = Can $114.50 / $91

$1 = Can $1.2582

Therefore, the Can$/$ exchange rate is Can $1.2582 / US $1