question archive A can of soda costs $0
A can of soda costs $0
Subject:FinancePrice: Bought3
A can of soda costs $0.75 in the United States and 12 pesos in Mexico. What is the peso-dollar exchange rate if purchasing-power parity holds? If a monetary expansion caused all prices in Mexico to double, so that soda rose to 24 pesos, what would happen to the peso-dollar exchange rate?
