A product sells for $750 in the United States.The spot exchange rate is $1 to 1.65 Swiss francs.If purchasing power parity (PPP)holds,what is the price of the product in Switzerland?
A)902.14
B)1,002.38
C)1,113.75
D)1,237.50
E)1,361.25

Question

Quizplus · Accepted Answer

According to PPP, the price in Switzerland should be the US price multiplied by the exchange rate: $750 * 1.65 = 1,237.50 Swiss francs.

A Product Sells for $750 in the United States