can someone please go through the steps to get B? Suppose the price of a U.S. ma

Question

can someone please go through the steps to get B?

Suppose the price of a U.S. made television is $1800 in New York City and the price of an equal quality South Korea made television is 1,320,000 Won in Seoul. If the nominal exchange rate is 1100 Won per U.S. dollar, then, for televisbns only and for the U.S. and South Korea, ignoring transportation costs,______ . the numerical value of the U.S. real exchange rate is 0.5 the price of the South Korea televisbn in New York City is $1200 the numerical value of the U.S. real exchange rate is 3.0 the price of the U.S. made televisbn in Seoul is 880,000 Won there is purchasing power parity

Explanation / Answer

1100 won = 1 US $

1320000 won = 1200 US $

option B is correct

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