Problem 6:

Problem 6 Intro The exchange rate between euros and dollars is currently $1.19 per euro. Annual inflation is expected to be 1.5% in Europe and 2.5% in the U.S. Part 1 | Attempt 1/10 for 10 pts. If relative purchasing power parity holds, what is the expected exchange rate in one year (in dollars per euro)? 2+ decimals Submit