13. If the price level recently increased by 20% in Eng- land while falling by 5% in...

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13. If the price level recently increased by 20% in Eng- land while falling by 5% in the United States, how much must the exchange rate change if PPP holds? Assume that the current exchange rate is 0.55 pound per dollar.

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Financial Markets and Institutions

ISBN: 978-0321280299

5th edition

Authors: Frederic S. Mishkin, Stanley G. Eakins

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