From the base price level of 100 in 1979Saudi Arabian and U.S. price levels in 2008 stood at 280 and 572, respectivelyAssume 1979 $ per riyal exchange rate was $0.58 per riyal. Suggestion: Using purchasing power parityadjust the exchange rate to compensate for inflationThat is, determine the relative rate of inflation between the United States and Saudi Arabla and multiply times per riyal of 0.58

From the base price level of 100 in 1979 . Saudi Arabian and U.S price levels in 2008 stood at 280 and 572 , respectively. Assume the 1979$ per riyal exchange rate was $0.58 per rlyal. Suggestion: Using purchasing power parity, adjust the exchange rate to compensate for inflation. That is, determine the relative rate of Inflation between the United States and Saudi Arabia and multiply this times $ per tiyal of 0.58 . What should the exchange rate be in 2008 ? Note: Do not round intermediate calculations. Round your answer to 2 decimal places