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The United States and the country of Rueland have the same real interest rate of 2 percent. The expected inflation over the next year is
The United States and the country of Rueland have the same real interest rate of 2 percent. The expected inflation over the next year is 4 percent in the United States versus 19 percent in Rueland. Interest rate parity exists. The one-year currency futures contract on Rueland's currency (called the ru) is priced at $0.45 per ru. What is the spot rate of the ru? Do not round intermediate calculations. Round your answer to three decimal places.
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