Question
2. As of November 1, 1999, the exchange rate between the Brazilian real and U.S. dollar is R$1.9/$. The consensus forecast for the U.S. and
2. As of November 1, 1999, the exchange rate between the Brazilian real and U.S. dollar is R$1.9/$. The consensus forecast for the U.S. and Brazil inflation rates for the next 1-year period is 2.6% and 30.0%, respectively. What would you forecast the exchange rate to be at around November 1, 2000? (Use approximate version)
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International Financial Management
Authors: Cheol S. Eun, Bruce G.Resnick
6th Edition
71316973, 978-0071316972, 78034655, 978-0078034657
