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a country called x is recording a high-level inflation related to h country. explain how the high inflation affects the exchange rate between the country
a country called x is recording a high-level inflation related to h country. explain how the high inflation affects the exchange rate between the country x dollar against the h country currency. you can assume that inflation in h country remains the same. suppose that the government of the country x bans international trade with country h how would this affect your view on this statement "if the forward rate is an unbiased estimate of the future spot rate then companies should not invest their excess cash in the foreign financial market"
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