In 1973, the GDP deflator was 45 0 in Switzerland and 34 3 in the United States (with 1995 100) In 2001, it was 103 2 in Switzerland and 112 1 in the United States The exchange rate of the Swiss franc was SF3 1648 per dollar in 1973 and SF1 6876 in 2001 Did the relative PPP theory hold between Swit...

The rate of inflation in Spain from 1973 and 1998 was 1075 101 1075 ...

In 1973, the GDP deflator was 45.0 in Switzerland and 34.3 in the United States (with 1995

Question:

In 1973, the GDP deflator was 45.0 in Switzerland and 34.3 in the United States (with 1995 = 100). In 2001, it was 103.2 in Switzerland and 112.1 in the United States. The of the Swiss franc was SF3.1648 per dollar in 1973 and SF1.6876 in 2001. Did the relative PPP theory hold between Switzerland and the United States between 1973 and 2001? Why?
Exchange Rate
The value of one currency for the purpose of conversion to another. Exchange Rate means on any day, for purposes of determining the Dollar Equivalent of any currency other than Dollars, the rate at which such currency may be exchanged into Dollars...