Currently, you can exchange €100 for $132.66. The inflation rate in Euroland is expected to be 3.1 percent as compared to 3.6 percent in the U.S. Assuming that relative purchasing power parity exists, what should the exchange rate be 5 years from now?

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The Answer of Currently, you can exchange €100 for $132.66. The inflation rate in Euroland is expected to be 3.1 percent as compared to 3.6 percent in the U.S. Assuming that relative purchasing power parity exists, what should the exchange rate be 5 years from now?

Currently, You Can Exchange €100 for $132