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I am not sure how to derive the spot rate of MYR/A$ based on graphical analysis of the IFE . Pls show me steps, thank

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I am not sure how to derive the spot rate of MYR/A$ based on graphical analysis of the IFE . Pls show me steps, thank you

image text in transcribed
red It of A year ago, the exchange rate of the foreign currency Australia dollar (A$) against the home currency Malaysian ringgit (MYR) was MYR4.8621/A$. After one year, point C in the following graph represents a disparity in the purchasing power parity (PPP) where In and If is the inflation of MYR and A$, respectively. What is the spot rate of the Australian dollar against the Malaysian ringgit (MYR/A$)? (enter 4 decimal places number with no sign and symbol) MYRR In- 1, (% ) PPP line Increased purchasing DOC power of foreign goods 3 4. 8 621 % A in the foreign currency's spot rate -3 Decreased purchasing power of foreign goods Answer: X The correct answer is: 4.9107

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