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The September 2016 inflation rate for China (the home country) is 1.9% and for Brazil (the foreign country) 8.48%. Based on PPP, what would you

The September 2016 inflation rate for China (the home country) is 1.9% and for Brazil (the foreign country) 8.48%. Based on PPP, what would you expect to happen to the foreign currency? Show your calculations and discuss the expected effect.

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