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Let e 0 = $1.29 per , US = 3% and EU = 5% that are likely to continue for next 4 periods. (a) Calculate
Let e0 = $1.29 per , US = 3% and EU = 5% that are likely to continue for next 4 periods.
(a) Calculate e4 and e'4.
(b) Calculate % appreciation/depreciation of and $. Explain their implications for the USA and the Euro Zone.
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