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A. Define IFE and explain the fact of how it occurs. Is there any deviation from it? B. The inflation rates in the British pound

A. Define IFE and explain the fact of how it occurs. Is there any deviation from it?

B. The inflation rates in the British pound and the Australian dollar are 2% and 8% respectively. What should the Sex /Forward ER be, if the Spot ER is BP/ A$ .1? Describe the concept of purchasing power.

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