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Over a year the consumer price index changed from 200 to 210 in the US. For the same period the Canadian inflation rate was 9%.

Over a year the consumer price index changed from 200 to 210 in the US. For the same period the Canadian inflation rate was 9%. The exchange rate was USD 1.00 per CAD at the beginning of the year. What should be the exchange rate (USD per CAD) at the end of the year if relative PPP were to hold?

USD 0.9528 per CAD

USD 0.9633 per CAD

USD 0.9701 per CAD

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