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d. Based solely on purchasing power parity (PPP), calculate the expected one-year inflation rate in the U.S. if the Canadian inflation rate is expected to

d. Based solely on purchasing power parity (PPP), calculate the expected one-year inflation rate in the U.S. if the Canadian inflation rate is expected to be 3.5% next year and the one-year forward rate if a Canadian dollar is USD$.75/CAD$1.

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