Question
if the current spot exchange rate is $0.9744 Canadian buys $1 U.S and inflation is expected to be 1 percent over the next year in
if the current spot exchange rate is $0.9744 Canadian buys $1 U.S and inflation is expected to be 1 percent over the next year in the United States with the Canadian inflation rate expected to be 5 percent over the same period, what would the exchange rate be at the end of the year using the relative form of the PPP equation?
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Finance For Executives Managing For Value Creation
Authors: Gabriel Hawawini, Claude Viallet
3rd Edition
0324274319, 9780324274318
