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Question 12 1 pts Suppose the annual inflation rate in the US is expected to be 2.5%, while it is expected to be 18.00 %

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Question 12 1 pts Suppose the annual inflation rate in the US is expected to be 2.5%, while it is expected to be 18.00 % in Mexico. The current spot rate (on 1/1/XO) for the Mexican Peso (MXN) is $0.1000. According to Purchasing Power Parity, one year later, the expected spot price for MXN on 1/1/X1 should be: $0.1151 $0.0983 $0.0869 $0.1012

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