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The expected annual inflation rate in Switzerland is 0.5%. The current spot exchange rate is SF0.9896/$ and the expected value of the spot exchange rate
The expected annual inflation rate in Switzerland is 0.5%. The current spot exchange rate is SF0.9896/$ and the expected value of the spot exchange rate a year from now is SF0.9750/$. If the international parity condition holds, how many percent should the expected annual inflation rate in the United States be? Round your answer to the nearest integer
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