5. Suppose that you are trying to decide between two job offers. One consult- ing firm offers you $150,000 per year to work out of its New York office. A second consulting firm wants you to work out of its London office and of- fers you 100,000 per year. The current exchange rate is $1.65/. Which offer should you take, and why? Assume that the PPP exchange rate is $1.40/ and that you are indifferent between working in the two cities if the purchasing power of your salary is the same.

5. Suppose that you are trying to decide between two job offers. One consulting firm offers you $150,000 per year to work out of its New York office. A second consulting firm wants you to work out of its London office and offers you 100,000 per year. The current exchange rate is $1.65/. Which offer should you take, and why? Assume that the PPP exchange rate is $1.40/ and that you are indifferent between working in the two cities if the purchasing power of your salary is the same