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Suppose that the Australian rate of inflation is 3%, and the German rate of inflation is 2%. If the euro strengthens relative to AUD by
Suppose that the Australian rate of inflation is 3%, and the German rate of inflation is 2%. If the euro strengthens relative to AUD by 7%, what
would be the magnitude of the real appreciation of the euro relative to the AUD?
would be the magnitude of the real appreciation of the euro relative to the AUD?
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International Financial Management
Authors: Geert Bekaert, Robert J. Hodrick
2nd edition
013299755X, 132162768, 9780132997553, 978-0132162760
