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QUESTION 2 a) How would the spot rate of RM5.5698 per (Pound Sterling) adjust according to purchasing power parity (PPP) if United Kingdom (UK)

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QUESTION 2 a) How would the spot rate of RM5.5698 per (Pound Sterling) adjust according to purchasing power parity (PPP) if United Kingdom (UK) is experiencing an inflation rate of 4.5 percent while Malaysia experiences an inflation of 3.5 % per annum? Explain your answer. (4 marks)

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