If the price level recently increased by 20% in England while falling by 5% in Canada, how

Question:

If the price level recently increased by 20% in England while falling by 5% in Canada, how much must the exchange rate change if PPP holds? Assume that the current exchange rate is 0.55 pounds per 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...

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