The equation for purchasing power parity is – the domestic price should equal the exchange rate multiplied by the foreign price. Suppose your shirt sells for 10 euros in Europe.  If purchasing power parity holds, what should be the price of that same shirt in the United States if it takes 1.145 dollars to get one euro?

A car costs $20,000 in the United States and 2.500,000 yen in Japan. The exchange rate is $1 103 yen. The purchasing power parity of the dollar is yen. (Enter  your response as a whole number)

The Purchasing Power Parity (PPP) theory of the exchange rate implies that the currency of a country A would depreciate against that of country B if: (a) the inflation rate in A exceeds that in B (b) the normal interest rate in A exceeds that in B (c) the growth rate of GDP in B exceeds that in A (d) foreign direct investment moves from B to A

Coffee grown in Guatemala is priced at 19 Guatemalan quetzal per pound (Guatemalan quetzal, or GTQ, is the currency of Guatemala). Comparable coffee grown in the U.S. is priced at $6.20 per pound. One Guatemalan quetzal trades for $0.13 in the foreign exchange market. Find the real exchange rate from the perspective of the United States and from the perspective of Guatemala, and determine which country's coffee is more competitively priced? Instructions: Enter your responses rounded to two decimal places. Real exchange rate from the perspective of the U.S. is ☐ Real exchange rate from the perspective of Guatemala is Coffee is more competitively priced in (Click to select)