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Suppose the annual inflation rate in the US is expectdd to be 2.5%, while it is expected to be 18.00 % in Mexico. The current

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Suppose the annual inflation rate in the US is expectdd to be 2.5%, while it is expected to be 18.00 % in Mexico. The current spot rate (on 1/1/XO) for the Mexican Peso (MXN) is $0.1000. If the spot rate of MXN turns out to be $0.085 on 1/1/X1, the net cash flow of a US importer from Mexico will: Decrease Increase

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