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Suppose that the current spot exchange rate of the USA and New Zealand, US$/ NZ$, is 0.6750 and that the inflation rate in both countries
Suppose that the current spot exchange rate of the USA and New Zealand, US$/ NZ$, is 0.6750 and that the inflation rate in both countries is zero percent. tommorw new figures are released which indicate that the September quarter 2020 inflation is 1.8% in New Zealand and 0.1% in USA, respectively. Calculate the new spot exchange rate of US$/NZ$ that should result from the difference in inflation rates
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