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Assume the inflation rate in the U.S. is 1.59 percent. The spot rate for a foreign currency is 1.414 while the 1-year forward rate is

Assume the inflation rate in the U.S. is 1.59 percent. The spot rate for a foreign currency is 1.414 while the 1-year forward rate is 1.419. What is the approximate rate of inflation in the foreign country? 1.89% 1.94% 1.99% 2.04% c 2.09%

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