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10. If the annu theory of PPP predicts that the euro will rate approach predicts that 0.5%, respectively, then the al percent

real exchange rate
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he gven information nCOl PPP altulation The absolute puchasingoweaity relalion is p: The domeshc price index P e Poreign PriEuro app eciałe Hy, against the dolla九 Peal exchange ule amach. Reat he Lauo of one price Loop ) The lau, of one Price (Loop)eu uS 3.5% He Euro hill appreciate 315%against the dollar - C orrec Answer

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