A new coat costs 3,900 Russian rubles. How much will the identical coat cost in Euros if absolute purchasing power parity exists

A new coat costs 3,900 Russian rubles. How much will the identical coat cost in Euros if absolute purchasing power parity exists and the following exchange rates apply?        A.  €97.23 B.  €112.97 C.  €119.05 D.  €181.27 E.  €183.99 Ru3,900 ($1/Ru27.0520) (€1/$1.2762) = €112.97

63.	Assume that $1 can buy you either ¥95.42 or £0.6211. If a TV in London costs £990, what will that identical TV cost in Tokyo if absolute purchasing power parity exists?    A.  ¥58,797 B.  ¥60,554 C.  ¥152,094 D.  ¥161,855 E.  ¥163,542 £990 ($1/£0.6211) (¥95.42/$1) = ¥152,094

64.

In the spot market, $1 is currently equal to A$1.4910. Assume the expected inflation rate in Australia is 3.5 percent and in the U.S. 4.0 percent. What is the expected exchange rate one year from now if relative purchasing power parity exists?    A.  A$1.4810 B.  A$1.4835 C.  A$1.4875 D.  A$1.4985 E.  A$1.5005 E(S1) = A$1.4910 [1 + (0.035 - 0.04)]1 = A$1.4835

65.

In the spot market, $1 is currently equal to £0.6211. Assume the expected inflation rate in the U.K. is 4.2 percent while it is 3.1 percent in the U.S. What is the expected exchange rate one year from now if relative purchasing power parity exists?    A.  £0.6161 B.  £0.6178 C.  £0.6239 D.  £0.6279 E.  £0.6291 E(S1) = £0.6211 [1 + (0.042 - 0.031]1 = £0.6279