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Suppose the current spot rate for the UK pound is $1.9586/. The annual inflation rates in the US and in the UK are expected to
Suppose the current spot rate for the UK pound is $1.9586/. The annual inflation rates in the US and in the UK are expected to be 2% and 5%, respectively. What is your best forecast for the dollar/pound exchange rate in one years time?
| $1.90264/ | |
| $0.52559/ | |
| $2.01621/ | |
| Id like to phone a friend. |
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