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International financial management book QUESTION 6 If the annual inflation rate is 5.5% in the United States and 4% in the UK, and the dollar

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International financial management book

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QUESTION 6 If the annual inflation rate is 5.5% in the United States and 4% in the UK, and the dollar depreciated against the pound by 3%, then what is the real exchange rate, 1 pound = $ , assuming that PPP initially held, round to 4 decimal places? S

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