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6. Exercise 6.6 Suppose the current spot exchange rate for the Chinese yuan is USD 0.15 per CNY. If the domestic prices of traded goods
6. Exercise 6.6 Suppose the current spot exchange rate for the Chinese yuan is USD 0.15 per CNY. If the domestic prices of traded goods rice 70%% over the next 10 years in China and 20%% over the same period In the United States, then, according to the relative purchasing power parity hypothesis, the spot exchange rate for the yuan in 10 years will be approximately: O USD 0.52 per CNY O USD 0.11 per CNY O USD 0.75 per CNY O USD 0.40 per CNY
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