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If forecasted inflation rate in Mexico is 5% and in USA is 2%, calculate: a) Spot Exchange rates (MP/$ and $/MP) variation. Which currency will
If forecasted inflation rate in Mexico is 5% and in USA is 2%, calculate:
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a) Spot Exchange rates (MP/$ and $/MP) variation. Which currency will appreciate and which will depreciate?
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b) If forecasted inflation rate in Mexico grows to 10%, remaining in 2% in USA, calculate Spot Exchange rates (MP/$ and $/MP) variation. Which currency will appreciate and which will depreciate.
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