Purchasing Power Parity If the Current Spot Rate Between the U.S.dollar

Purchasing Power Parity If the current spot rate between the U.S.dollar and the Netherland Antilles guilder was $1 = 1.68 guilder,and if the inflation rate in the United States was 1 percent and in the Netherland Antilles it was 6 percent,then what would be the expected spot rate in one year?

A) $0.5952
B) $0.5654
C) $0.6250
D) $0.6571

Correct Answer:

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