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QUESTION 9 The average inflation rate for the next 3 years is expected to be 0.5% per year in the UK and 9.3% in Pakistan.

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QUESTION 9 The average inflation rate for the next 3 years is expected to be 0.5% per year in the UK and 9.3% in Pakistan. The current exchange rate is PKR 222 to the Pound (). What is the expected exchange rate (to the nearest PKR) in 3 years according to Purchasing Power Parity (PPP) theory

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