Question
1) If the inflation rate in the British pound versus the US $ is 14%, while the exchange rate is 1-pound exchanges for $1.25 presently,
1) If the inflation rate in the British pound versus the US $ is 14%, while the exchange rate is 1-pound exchanges for $1.25 presently, if the future spot rate is $1.15, what is the US inflation rate? 2) What is the meaning of the above in the context of PPP? Specifically, you have to connect your results to PPP.
Please show me step by step how this was calculated as I need to understand the path of how to answer came to be using the PPP formula.
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Accounting
Authors: Carl warren, James Reeve, Jonathen Duchac, Sheila Elworthy,
Volume 1, 2nd canadian Edition
176509739, 978-0176509736, 978-0176509743
