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Suppose all international parity conditions hold; and the real interest rate is 1% per year and is equalized across countries.If the annual nominal interest rate

Suppose all international parity conditions hold; and the real interest rate is 1% per year and is equalized across countries.If the annual nominal interest rate in Foreign is 4% and the nominal value of domestic currency is expected to appreciate at a rate of 3% per year.Find the domestic inflation rate.

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