If a product costs ¥10,000 in Japan and \$90 in the US, what should the exchange rate be to maintain Purchasing Power Parity?

• A. \$1 = ¥90.00
• B. \$1 = ¥120.00
• C. \$1 = ¥111.11
• D. \$1 = ¥100.00

Answer: (C)