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The current exchange for the Swedish krona is $0.1050. Inflation in Australia and Sweden is expected to be 4 and 9 per cent, respectively in

The current exchange for the Swedish krona is $0.1050. Inflation in Australia and Sweden is expected to be 4 and 9 per cent, respectively in the forthcoming year and 6 and 7 per cent, respectively in the following year. If purchasing power parity holds, what will be the value of the Swedish krona in two years? a. $0.1024 b. $0.1111 c. None of the other answers is correct. d. $0.1074 e. $0.0992

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