The exchange rate is about 17 Nicaraguan cordoba per dollar.According to purchasing-power parity,this exchange rate would rise if

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According to purchasing-power parity, exchange rates will adjust to ensure that the same basket of goods can be purchased in different countries for the same price. If the price level in the United States falls, then goods in the US become cheaper and US dollars become more valuable, leading to an increase in the exchange rate. Similarly, if the price level in Nicaragua rises, then goods in Nicaragua become more expensive and the Nicaraguan cordoba would be worth less in terms of US dollars, leading to an increase in the exchange rate. Therefore, if the price level in the United States falls or the price level in Nicaragua rises, the exchange rate would rise consistent with purchasing-power parity.

The Exchange Rate Is About 17 Nicaraguan Cordoba Per Dollar