A product sells for $750 in the United States.The spot exchange rate is $1 to 1.67 Swiss francs.If purchasing power parity (PPP)holds,what is the price of the product in Switzerland?
A) 1,277.55
B) 1,528.05
C) 1,465.43
D) 1,252.50
E) 1,315.13

Question

Quizplus · Accepted Answer

According to PPP, the price in Switzerland should be the US price multiplied by the exchange rate: $750 * 1.67 = 1,252.50 Swiss francs.

A Product Sells for $750 in the United States