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The following hypothetical exchange rates are available: $1.6 / 100 / $ 160 / The hypothetical inflation rates in these countries are 20%, 15% and
The following hypothetical exchange rates are available: $1.6 / 100 / $ 160 / The hypothetical inflation rates in these countries are 20%, 15% and 10% per year for the U.S, Britain and Japan respectively. You are required to: i) State the current exchange rates in terms of / $, $ / and / ii) Compute the likely exchange rates for the three currency pairs for the next year
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