ns 1-6 are worth 7 pts. each, question 7 is worth 8 pts.) 1. Use the simplified version on page 244 of Purchase Price Parity (PPP) in completing the following table. In all situations assume the home currency to be the United States and price the exchange rate in dollars. Foreign Currency U.S. Foreign Inflation Inflation Ending Exchange Rate Movement of Foreign Currency (Appreciate or Depreciate) 1 Euro 4% Canadian $ 5% Chinese Yuan 6% Australian $ 3% Belize $ 4% Pound 2% Sterling 6% 3% 4% 5% 15% 1% Beginning Exchange Rate $1.15 $.77 $.14 9.71 S.50 $1.31