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If inflation rates in Australia and France are expected to be 4.91% and 8.87%, respectively, on an annual basis over the next five years, what

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If inflation rates in Australia and France are expected to be 4.91% and 8.87%, respectively, on an annual basis over the next five years, what is the expected spot exchange rate for the Euro (USD/EUR) in five years? Assume the current spot exchange rate is USD1.14/EUR. a. USD1.0985/EUR b. USD0.9472/EUR c. USD1.3720/EUR d. USD0.7289/EUR e. USD1.0586/EUR

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