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Consider the following information: UK () USD ($) Price level (t) 10,000 17,000 Inflation 7%...

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Consider the following information: UK () USD ($) Price level (t) 10,000 17,000 Inflation 7% 3% Price level (t+1) 10,700 17,510 Actual exchange rate ($/) at $1.8/ timet If relative PPP holds from time t to t+1, which of the following statements is/are correct? i. The real exchange rate at time t is $1.0588/ ii. The real exchange rate at time t+1 is $1.733/ iii. The US dollar is most likely to appreciate by 3.74% against thel pound over the 1-year period. C C >

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