Other things equal, and assuming efficient markets (the law of one price holds), if a Audi Q7 costs 67,500 in the Germany, then at an exchange rate of $1.21/, the Audi Q7 should cost in the U.S. $67,500 $81,675 $55,785 None of the answers are correct $77,300 Which of the following statements is correct with respect to absolute PPP? Identical goods should be price equal in different market Exchange rate changes should be equal to the inflation rate differential between two countries Prices of the same basked of goods and services should cost the same in two different markets after adjusted for the exchange rate None of the answers are correct Inflation will have no impact on the exchange rate Which of the following statements is correct? None of the answers is correct Two goods always sell for the same price in two markets. According to the international fisher effect, the country's currency with the lower interest rate will depreciate According to relative PPP, the currency with the lower inflation will appreciate According to relative PPP, the currency with the lower inflation will depreciate