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If the expected inflation rates in Australia and Russia are 3% and 2% respectively, what would you expect the AUD/RUB exchange rate to change in
If the expected inflation rates in Australia and Russia are 3% and 2% respectively, what would you expect the AUD/RUB exchange rate to change in one year according to Purchasing Power Parity Theory? Select one: O a. AUD is expected to appreciate relative to RUB O b. AUD is expected to be the same at current rate relative to RUB Both AUD and RUB are expected to appreciate relative to other currencies C. O d. AUD is expected to depreciate relative to RUB e. Both AUD and RUB are expected to depreciate relative to other currencies
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