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Assume inflation is expected to be 3% in the US next year cmopared with 10% in AUS. If the us dollar of an aus dollar

Assume inflation is expected to be 3% in the US next year cmopared with 10% in AUS. If the us dollar of an aus dollar is currently at $.50 what is the expected exchange rate one year from now based on PPP?

a 1.03

b .468

c .515

d .486

e .534

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