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Knowing U.S. inflation rate of 2% and in China inflation rate of 5%, given the spot foreign exchange market as of November 22, 2020 1
Knowing U.S. inflation rate of 2% and in China inflation rate of 5%, given the spot foreign exchange market as of November 22, 2020 1 Yuan (CNY) = $0.152409 How much this exchange rate can change if Purchasing Power Parity holds? What would be the new exchange rate?
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