Question: In the previous problem, if Canada had somehow managed no inflation since 1974, what should the exchange rate be in 2017, using the purchasing power

In the previous problem, if Canada had somehow managed no inflation since 1974, what should the exchange rate be in 2017, using the purchasing power parity theory?

Data from previous problem

From the base price level of 100 in 1974, Swiss and Canadian price levels in 2017 stood at 200 and 421, respectively. If the 1974 $/Sf exchange rate was $0.40/Sf, what should the exchange rate be in 2017?

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