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The current Spot rate between Australian Dollars and US Dollars is A$1.12/US$. If the expected annual rate of inflation is 3% in Australia and 1%

The current Spot rate between Australian Dollars and US Dollars is A$1.12/US$. If the expected annual rate of inflation is 3% in Australia and 1% in the US, according to the theory of Relative PPP, the Spot rate one year from now should be closest to ____________.

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