Question No 9 You are given the following information: Spot rate DM 1.50/$ USD/DM 1.5 3-month forward rate DM 1.51/$ USD/DM 1.51 The inflation rate in Germany is 4%. Calculate the inflation rate in the USA assuming that Purchasing Power Parity holds goods even in the short run The rate of inflation in India is 8% pa, and in USA it is 4%. The current spot rate for USD in India is Rs.76. What will be the expected rate after one year and after 4 years applying the purchasing power parity theory. ....NA