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Please show your work, for the second question discuss the purchasing power parity and apply it to this problem and answer if the situation will
Please show your work, for the second question discuss the purchasing power parity and apply it to this problem and answer if the situation will continue as is.
1) If the inflation rate in the British pound versus the US $ is 4%, while the exchange rate is 1 pound exchanges for $1.25 presently, if the future spot rate is $1.15, what is the US inflation rate? 2) What is the meaning of the above in the context of PPP Step by Step Solution
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