Question: 17.50 is incorrect not sure what this could be. From the base price level of 100 in 1981, Saudi Arablan and U.S. price levels in

17.50 is incorrect not sure what this could be.

From the base price level of 100 in 1981, Saudi Arablan and U.S. price levels in 2010 stood at 240 and 100 , respectively. Assume the 1981$/rlyal exchange rate was $0.42 rlyal. Suggestion: Using the purchasing power parity, adjust the exchange rate to compensate for Inflation. That Is, determine the relative rate of Inflation between the United States and Saudi Arabia and multiply this times $/riyal of 0.42. What should the exchange rate be in 2010 ? (Do not round Intermedlate calculatlons. Round your answer to 2 decimal places.)

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