Suppose gold is the only good in the world and today sells for $1,526 in the U.S. and for 1,146 in the U.K. Over the next year inflation is expected to be 3% in the U.S. and 4% in the U.K. What should the spot price ($/) be next year according to Purchasing Power Parity? [Note: your answer should have at least 3 decimal places]

Suppose gold is the only good in the world and today sells for $1,526 in the U.S. and for 1,146 in the U.K. Over the next year inflation is expected to be 3% in the U.S. and 4% in the U.K. What should the spot price ( $/E ) be next year accordin k to Purchasing Power Parity? [Note: your answer should have at least 3 decimal places]