A can of soda costs $0.75 in the United States and 12 pesos in Mexico. What would

Question:

A can of soda costs $0.75 in the United States and 12 pesos in Mexico. What would the peso-dollar be if purchasing-power parity holds? If a monetary expansion caused all prices in Mexico to double, so that soda rose to 24 pesos, what would happen to the peso-dollar Exchange Rate
The value of one currency for the purpose of conversion to another. Exchange Rate means on any day, for purposes of determining the Dollar Equivalent of any currency other than Dollars, the rate at which such currency may be exchanged into Dollars...