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Suppose the spot exchange rate for the Hungarian forint is HUF 222.23/CAD. The inflation rate in Canada will be 2.9% per year. It will be

Suppose the spot exchange rate for the Hungarian forint is HUF 222.23/CAD. The inflation rate in Canada will be 2.9% per year. It will be 4.5% in Hungary.

What do you predict the exchange rate will be in one year?

Exchange rate HUF/$

What do you predict the exchange rate will be in two years?

Exchange rate HUF/$

What do you predict the exchange rate will be in five years?

Exchange rate HUF/$

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