How does he solve the puzzle

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Reference no: EM131086767

An American tourist in India pays Rs.25 for a burger which costs him $1 in the U.S. But heknows that market exchange rate is $1 = Rs.40. How does he solve the puzzle?

a) Goods are cheaper in India

b) He got a premium when $1 was converted into Rs.40.

c) He is confronted with two rates: purchasing power parity rate and market determinedrate

d) None of the above

Reference no: EM131086767

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