Question
If inflation in U.S. is projected at 3% annually for the next year and at 8% annually in Mexico for the same time period, and
If inflation in U.S. is projected at 3% annually for the next year and at 8% annually in Mexico for the same time period, and the spot rate is currently at 10.20 pesos/$, then the purchasing power parity estimate for the spot rate one year from now is:
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Financial Management Core Concepts
Authors: Raymond M Brooks
3rd edition
133866696, 978-0133866698
