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Question 39 Given the information: Inflation rate in US th) 3.0% Inflation rate in Europe f) 7.5% The current spot rate of EUR (SR) $1.25

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Question 39 Given the information: Inflation rate in US th) 3.0% Inflation rate in Europe f) 7.5% The current spot rate of EUR (SR) $1.25 According to Purchasing Power Parity, one year later, the expected spot price for EUR (SR) should be: $1.3046 $1.2555 $2.4477 $1.1977

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