Question: Expected Spot Rate suppose the spot exchange rate for the Hungarian forint is HUF 221.53, the inflation rate in the United States will be 4.9

Expected Spot Rate suppose the spot exchange rate for the Hungarian forint is HUF 221.53, the inflation rate in the United States will be 4.9 percent per year. It will be 8.6 percent in Hungary. What do you predict the exchange rate will be in one year? In two years? In five years? What relationship are you using?

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