A if purchasing power parity holds what is the spot


A laptop costs $1,300 in the United States. The same laptop costs 930 British pounds.

a. If purchasing power parity holds, what is the spot exchange rate between the British pound and the dollar?

b. According to the spot rate calculated in 7.a, how many British pounds would you receive for every U.S. dollar exchanged?

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Finance Basics: A if purchasing power parity holds what is the spot
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