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The inflation rates in the British pound and the Australian dollar are 12% and 8% respectively. What should the Sex /Forward ER be, if the

The inflation rates in the British pound and the Australian dollar are 12% and 8% respectively. What should the Sex /Forward ER be, if the Spot ER is BP/ A$ .1 i.,e,. 1 BP equals 10 Australian dollars.? Describe the concept of purchasing power.

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