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SHOW YOUR WORK A laptop costs $1,300 in the United States. The same laptop costs 930 British pounds. a If purchasing power parity holds, what

**SHOW YOUR WORK**

A laptop costs $1,300 in the United States. The same laptop costs 930 British pounds.

a If purchasing power parity holds, what is the spot exchange rate between the British pound and the dollar?

b According to the spot rate calculated in 7.a, how many British pounds would you receive for every U.S. dollar exchanged?

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