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Assume that inflation in the U.S. is expected to be 9%, while inflation in Australia is expected to be 5% over the next year. Today

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Assume that inflation in the U.S. is expected to be 9%, while inflation in Australia is expected to be 5% over the next year. Today the Australian dollar is quoted at 80.70. You believe that purchasing power parity holds. How much is the expected future spot rate (S1)? $0.69 $0.67 $0.71 $0.73

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