Question
Suppose inflation rates in the USA and Australia are expected to be 3% and 5.5%, respectively. If the spot rate is AUD 1.331=USD 1 and
Suppose inflation rates in the USA and Australia are expected to be 3% and 5.5%, respectively. If the spot rate is AUD 1.331=USD 1 and exchange rate one year later changes to AUD 1.315 =USD 1, what is the real currency value change of the AUD in terms of USD?
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Personal Finance
Authors: Jack Kapoor, Les Dlabay, Robert J. Hughes
11th edition
9781259278617, 77861647, 1259278611, 978-0077861643
