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Purchasing Power Parity A computer costs $460 in the United States. The same model costs 725...

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Finance

Purchasing Power Parity A computer costs $460 in the UnitedStates. The same model costs 725 euros in France. If purchasingpower parity holds, what is the spot exchange rate between the euroand the dollar? Do not round intermediate calculations. Round youranswer to two decimal places.

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Solution As per the information given in the question we have Cost of computer in US Dollars 460 Cost of computer in Euros 725 Since Purchasing power parity    See Answer
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