According to Purchasing Power Parity, if a country has lower inflation than its trading partners, its exchange rate will _________ If $1 costs 0.8 British pounds, and one British pound buys 100 yen, what is the S price of 1 yen? If a Nestles bar cost $0.50 in the US, and it costs 075 Swiss Francs in Zurich, what is the exchange rate that equalizes the price in both countries (Law of One Price)? Swiss Franc per S _________ Assume two countries, Fredonia and Sylvania have equal price levels. The price index in both countries is equal to 100, and the exchanges rates are Fl 2 S1 [F is the Fredonia currency and S is the Sylvania currency). Inflation in Sylvania raises its price index to 150. Using the Law of one price, what is the new price ofthe Sylvanian currency in Fredonia? That is, how many F per S