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3. You believe that the future value of the Thai Bhat will be determined by purchasing power parity (PPP). You expect that inflation in Thailand

3. You believe that the future value of the Thai Bhat will be determined by purchasing power parity (PPP). You expect that inflation in Thailand will be 9 percent next year, while inflation in the United States will be 3 percent next year. Today the spot rate of the Thai Baht is $.031. What is the expected spot rate of the Thai Baht in one year?

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