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Assume the current exchange rate between the US dollar and the UK Pound Sterling is 0.6 (pounds per $). Assuming the purchase price parity theory

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Assume the current exchange rate between the US dollar and the UK Pound Sterling is 0.6 (pounds per \$). Assuming the purchase price parity theory holds, what is the new exchange rate (pounds per \$) if the price level in the US increases by 5% and the price level in the UK increases by 10%

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