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Question 25 (4 points) Annual inflation rates in the US and Mexico are expected to be 6% and 20% respectively, over the next year. If

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Question 25 (4 points) Annual inflation rates in the US and Mexico are expected to be 6% and 20% respectively, over the next year. If the current exchange rate is $0.005/Ps and PPP holds, what is the expected exchange rate at the end of next year? $0.005/Ps $0.004/Ps $0.006/Ps $0.002/Ps

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