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Question 1 0 If the forecast UK inflation rate is 6 % and the forecast European inflation rate is 9 % and the spot exchange
Question
If the forecast UK inflation rate is and the forecast European inflation rate is and
the spot exchange rate is Then according to relative PPP which of the following
statements is correct?
A The pound is forecast to appreciate by to approximately
B The pound is forecast to depreciate by to approximately
C The euro is forecast to appreciate by to approximately
D The euro is forecast to depreciate by to approximately
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