Sue owns a baking company. The company's total revenue for a month is $4000. The monthly costs of resources bought in the market and of resources owned by the firm are $2000 and monthly costs of resources supplied by the owner are $1000

According to the theory of purchasing power parity, in the long run

A) the nominal exchange rate should equal the domestic inflation rate. B) the domestic inflation rate should equal the foreign inflation rate. C) the real exchange rate should equal 1. D) the real exchange rate should equal the domestic inflation rate divided by the foreign inflation rate.

The most populous state in the U.S. is:

a. Illinois b. California c. Michigan d. Georgia