Question: $2,500 is the current computer price in US and the current spot exchange rate is $0.7102/C$.The U.S. inflation rate is 1% and the Canadian inflation

$2,500 is the current computer price in US and the current spot exchange rate is $0.7102/C$.The U.S. inflation rate is 1% and the Canadian inflation rate is 2.8%. Assume the purchasing power parity (PPP) holds. find the computer in Canada one year from now if there is a 85% exchange rate pass-through.

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