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please answer and show work 5. On January 1, 1990, the annual inflation rates in the U.S. and Greece were expected to be 3% and
please answer and show work
5. On January 1, 1990, the annual inflation rates in the U.S. and Greece were expected to be 3% and 8%, respectively. If the current spot rate that day for the drachma was $.007, then what was the expected spot rate in three years? (10 %) 8. Suppose it is January 1, 1994 and the Deutsche mark revalues from $.30 at the beginning of the year to $.33 at the end of the year. Inflation during the year is 5% in the U.S. and 3% in Germany. Does DM has a real devaluation () or real revaluation (+) of the Deutsche mark during the year? Why? (20%) Step by Step Solution
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