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uestion 1 (5 points) Airpods in Germany are 110 vs Canada's price of $180 with an exchange rate of $1.60. However, Germany's inflation is expected

uestion 1 (5 points) Airpods in Germany are 110 vs Canada's price of $180 with an exchange rate of $1.60. However, Germany's inflation is expected to increase 5% while Canada inflation rate will stay stable. Calulate the impact on the real exchange rate? Which country offers the cheaper price? According to Purchasing Power Parity, how will this impact the exchange rate?( ie Appreciation or Depreciation of C$.)

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