Question
The current spot rate of the US $ against the UK is $1.310 to 1. Inflation rates for the next year are expected to be
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The current spot rate of the US $ against the UK is $1.310 to 1. Inflation rates for the next year are expected to be 2% in the US and 3% in the UK. Using the purchasing power parity theory calculate the dollar exchange rate in one years' time.
A. 1.297
B. 1.310
C. 1.322
D. 1.280
E. 1.340
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Sport Finance
Authors: Gil Fried, Timothy D. DeSchriver, Michael Mondello
4th Edition
1492559733, 978-1492559733
