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American investors can invest $1,000 at an interest rate of 4.1%. Alternatively, they can convert those funds to 936.05 South Korean won at the current
American investors can invest $1,000 at an interest rate of 4.1%. Alternatively, they can convert those funds to 936.05 South Korean won at the current exchange rate and invest at 3.6% in South Korea. If the real interest rates are the same in the two countries and the expected inflation rate in the United States is 3.5%, what must be investors' forecast of the inflation rate in South Korea
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