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Suppose on January 1, the spot rate of Thailand currency baht was B20.00/$. The inflation in the U.S. is 4% and in Thailand is 24%.
Suppose on January 1, the spot rate of Thailand currency baht was B20.00/$. The inflation in the U.S. is 4% and in Thailand is 24%. Taking Thailand as the home country, the expected exchange rate in 6 months is _____ and in one year is _____.
A. B18.00/$, B16.00/$
B. B21.96/$, B23.85/$
C. B22.00/$, B24.00/$
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