Question
In: Finance
A product sells for $1,000 in the U.S. If the exchange rate between $ and euro...
A product sells for $1,000 in the U.S. If the exchange rate between $ and euro is $1 = 0.90 euro, and if PP holds, what would be the price of the same product in Europe?
Solutions
Expert Solution
Based on the Purchasing Parity,
$1 = 0.90 Euro
So, $1000 = (0.90 * 1000) Euro
$1000 = 900 Euro
jeff jeffy answered 1 year agoRelated Solutions
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