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A shirt costs $8 in the US and Rs 400 in India. PPP implies a rate of what?
ARs 50 per dollar
BRs 32 per dollar
CRs 80 per dollar
DRs 20 per dollar
Answer & Solution
Correct answer: A. Rs 50 per dollar
Equal cost requires 8 dollars to equal 400 rupees, so one dollar is worth Rs 50.
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