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Suppose the spot exchange rate for the Hungarian forint is HUF204.82. The inflation rate in the United States is 2.0 percent per year and is
Suppose the spot exchange rate for the Hungarian forint is HUF204.82. The inflation rate in the United States is 2.0 percent per year and is 5.0 percent 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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