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According to the relative purchasing power parity, the forecast change in the spot rate between two countries is equal to: * the current spot rate
According to the relative purchasing power parity, the forecast change in the spot rate between two countries is equal to: *
the current spot rate multiplied by the ratio of the interest rates in the respective countries.
but the opposite sign to the difference between inflation rates.
but the opposite sign to the difference between real interest rates.
but the opposite sign to the difference between nominal interest rates.
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