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b) The US inflation rate is expected to be 5.4% over the next year and the Australian inflation is expected to be 2.1% over the

b) The US inflation rate is expected to be 5.4% over the next year and the Australian inflation is expected to be 2.1% over the next year. The existing spot rate of the Australian dollar is $0.74. According to PPP, the Australian dollars exchange rate is forecast to change to:

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