Question
(1) A computer costs $600 in the United States. The same model costs 590 euros in France. If purchasing power parity holds, what is the
(1)
A computer costs $600 in the United States. The same model costs 590 euros in France. If purchasing power parity holds, what is the spot exchange rate between the euro and the dollar? Round your answer to two decimal places.
$1 = euros
(2)
If euros sell for $1.52 (U.S.) per euro, what should dollars sell for in euros per dollar? Round your answer to two decimal places.
euros per dollar
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Public Finance And Public Policy
Authors: Jonathan Gruber
6th Edition
1319105254, 9781319105259
