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As of today, the spot rate is $1.11/ and expected inflation is 3% in the US and 2% in the Euro zone. If purchasing power

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As of today, the spot rate is $1.11/ and expected inflation is 3% in the US and 2% in the Euro zone. If purchasing power parity holds, what should the exchange rate be next year? $1.1433/E $1.1375/E $1.1209/

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