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Suppose that the one-year inflation rate is 4.03% in the United States and 3.12% in Germany. The spot exchange rate is $1.3287/1.00. What should the
Suppose that the one-year inflation rate is 4.03% in the United States and 3.12% in Germany. The spot exchange rate is $1.3287/1.00. What should the one-year forward rate be according to relative purchasing power parity? $1.3701/1.00 $1.2340/1.00 $1.5053/1.00 $1.3405/1.00 $1.3170/1.00 $1.3822/1.00
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