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As of today, the spot exchange rate is 1.00 = $1.60 and the rates of inflation expected to prevail for the next year in the

As of today, the spot exchange rate is 1.00 = $1.60 and the rates of inflation expected to prevail for the next year in the US is 2% and 3% in the euro zone. Which currency is more likely to depreciate in the long run?

A. Euros

B. Dollars

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