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6. (3 points) This year CPI Inflation in Argentina is 10%, while it is 2% in the USA. These inflation rates are expected to persist
6. (3 points) This year CPI Inflation in Argentina is 10%, while it is 2% in the USA. These inflation rates are expected to persist over the long-run. The relative PPP hypothesis implies that, relative to the US Dollar, the Argentinian currency will: Depreciate 8% this year Depreciate every year 8% over the long-run Depreciate on average annually 8% over the long-run Both (a) and (c)
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