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Assume the current spot rate between the uk and the us is .6402 per 1 dollar. Rhe expected onflation rate in rhe us is 1.9
Assume the current spot rate between the uk and the us is .6402 per 1 dollar. Rhe expected onflation rate in rhe us is 1.9 percent. The expected inflation rate in the uk is 2.1 percent. If relative purchasing power parity exits, what will the exchange ratw be two years feom now?
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