If an item costs $5 in the US, assuming purchasing power parity with current exchange rates of $1.25/€, what is the price of the item in the Germany? If, over the next year, inflation is 6% in Germany and 10% in the United States, what would be the exchange rate of US dollars for Euro with inflation?

Answer rating: 100% (QA)

First lets calculate the price of the item in Germany using the current exchange rate Given Price of ... View the full answer