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Consider two different countries, Country A and Country B. Country A's currency is aoa and Country B's currency is bob. Today's exchange rate is: 1

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Consider two different countries, Country A and Country B. Country A's currency is aoa and Country B's currency is bob. Today's exchange rate is: 1 aoa = 2.4 bobs. Suppose that iPhone 12 is currently selling at 200 aoas in Country A and 480 bobs in Country B. Under the assumption that the purchasing power parity (PPP) exactly holds, if only Country A's inflation significantly increases, how will this affect the exchange rate and the price of iPhone 12? Just explain with no calculations ignoring any other economic effect

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