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The current spot rate between the U.K. and the U.S. is .4977 per $1. The expected inflation rate in the U.S. is 3.6 percent. The

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The current spot rate between the U.K. and the U.S. is .4977 per $1. The expected inflation rate in the U.S. is 3.6 percent. The expected inflation rate in the U.K. is 2.8 percent. If relative purchasing power parity exists, the exchange rate 1 year from now will be

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