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a ) If the consumer price index for the United States rises from 3 5 0 at the end of a year to 3 6

a) If the consumer price index for the United States rises from 350 at the end of a year to 365 at the end of the next year, how much inflation was there in the United States during that year?
b) Consider the case that inflation had been 6.5% in the euro-area in that year. How should the euro/USD exchange rate change on the basis of the Purchasing Power Parity.

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