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Suppose the annual inflation rate in the US is expected to be 3.5 %, while it is expected to be 8.00 % in Australia. The

Suppose the annual inflation rate in the US is expected to be 3.5 %, while it is expected to be 8.00 % in Australia. The current spot rate for the Australian Dollar (AD) is $0.7552 According to Purchasing Power Parity, estimate the expected percentage change in the value of the AD during a one-year period.

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