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Assume that the spot rate of the Canadian dollar is $0.77. How will this spot rate adjust according to PPP (Purchasing Power Parity) if the

Assume that the spot rate of the Canadian dollar is $0.77. How will this spot rate adjust according to PPP (Purchasing Power Parity) if the Canadian experiences an inflation rate of 4 percent while the United States experiences an inflation rate of 2 percent?

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