Question
The inflation rate in country A is 5% per annum. The inflation rate in country B is 8.0% per annum. The current spot rate is
The inflation rate in country A is 5% per annum. The inflation rate in country B is 8.0% per annum.
The current spot rate is 1 unit of currency of country A can purchase 7 units of currency of country B.
Suppose Purchasing Power Parity holds. 1 unit of currency of country A will be able to purchase how many units of currency of country B one year from today?
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International Finance For Non Financial Managers
Authors: Dora Hancock
1st Edition
0749480017, 9780749480011
