s. Purchasing power parity Aa Aa The law of one price The theory of purchasing power parity (PPP) states that in the long-run exchange rates between two countries adjusts so that the price of an icentical good is the same when expressed in the same aurrency. A printer costs E75.77 in England. The spot rate is aurrently $2.0145 per pound. Assuming that PPP holds true, what is the price of the printer in the United States? nied 30370 8 8330378 $41.37 $37.61 O $167.90 O $152.64 Suppose the price of the printer in the United States was actualy $167.90. Assuming no transaction costs transportation costs, or import restrictions, what does PPP predict would happen to the demand for the printer in the United States? O The demand for the printer would increase in the United States. O The demand for the printer would decrease in the United Stat