7. The table below shows the prices for various goods in Shanghai and Boston, in the local currencies. Price in Price in Boston Shanghai _ "r (per day) {per day) i. If you had $1000 and you can exchange currencies at a rate of 6.5 l$, where would you have more purchasing power? ii. The purchasing power parity theory suggests that the purchasing power of $1000 should be the same in all countries. What exchange rate would you expect based on the purchasing power theory? iii. If the exchange rate isn't as expected based on the theory, then that could be evidence one of the countries is manipulating the exchange rate. But maybe not. Economists have noticed that you almost always get more purchasing power in lower income countries. I t a model to predicts h t x ' ' us. . . . s = w as a function of a country's GDP per capita to get this: price in other country 1n(e) = 2.748 0.2361n(GDP per capita) If China's GDP per capita is about $16,000 per person, is the 5 based on the data above roughly consistent with the model