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The current price level in the U.S. is $14,000 per consumption bundle, and 10,000 per consumption bundle in the U.K.. The spot rate is $1.65/.
The current price level in the U.S. is $14,000 per consumption bundle, and 10,000 per consumption bundle in the U.K.. The spot rate is $1.65/. The annual inflation rate is expected to be 2% in the U.S. and 5% in the U.K. (2) If there is no change to the import/export between the U.S. and the U.K. at the end of the next year, calculate the % change of the value of USD in the next year based on relative purchasing power parity. Show both the calculation and the
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