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Question 6 Assume: standard consumption bundle currently sells for $35.000 in the US and CAD30,000 in Canada. The current exchange rate is CAD/USD. Annual inflation

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Question 6 Assume: standard consumption bundle currently sells for $35.000 in the US and CAD30,000 in Canada. The current exchange rate is CAD/USD. Annual inflation rate is expected to be 3% in the U.S. and 5% in Canada Forecast S(CAD/USD) based on PPP. Showing working for full credit.

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