The current spot rate between the euro and dollar is 1.0933/$. The annual inflation rate...
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The current spot rate between the euro and dollar is 1.0933/$. The annual inflation rate in the US is expected to be 2.78 percent and the annual inflation rate in euroland is expected to be 2.27 percent. Assuming relative purchasing power parlty holds, what will the exchange rate be in two years? Multiple Choice 1.0822/9 11045/8 10989/$ 1.0767/$ 1.0877/$
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