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Suppose the current exchange rate for polish zloty is Z 3.91. The expected exchange rate in three years is Z 3.98. What is the difference

Suppose the current exchange rate for polish zloty is Z 3.91. The expected exchange rate in three years is Z 3.98. What is the difference in the annual inflation rates for the U.S. and Poland over this period implied by the relative PPP?

Select one:

a. 0.29%

b. 0.49%

c. 0.39%

d. 0.59%

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