Question
If the nominal exchange rate of Canadian dollar (US$/C$) is $0.9850 and the expected inflation rates in Canada and the US are 4% and 3%
If the nominal exchange rate of Canadian dollar (US$/C$) is $0.9850 and the expected inflation rates in Canada and the US are 4% and 3% respectively, then one-year forecast for Canadian dollar under the relative version of the PPP would be:
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Public Finance A Contemporary Application Of Theory To Policy
Authors: David N Hyman
8th Edition
0324259700, 978-0324259704
