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Suppose annual inflation rates in the US and India are expected to be 1% and 15% respectively, over the next three years (for each of
Suppose annual inflation rates in the US and India are expected to be 1% and 15% respectively, over the next three years (for each of the following three years inflation is expected to be 1% in US and 15% in India). If the current spot rate for the Indian Ruppee is USD/INR 42, then relative purchasing power parity suggests that one unit of dollar in three years will be ___________. (Round to the next integer)
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