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Given the information: Inflation rate in US (th): 3.5% Inflation rate in Europe (th): 8.0% The current spot rate of EUR (SR): $1.15 If the
Given the information: Inflation rate in US (th): 3.5% Inflation rate in Europe (th): 8.0% The current spot rate of EUR (SR): $1.15 If the spot rate of EUR (SR1) turns out to be $1.112 one year later, then the net cash flow of a US exporter to Europe will: Decrease Increase
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