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The current spot rate of the US $ against the UK is $1.310 to...

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Finance

  1. The current spot rate of the US $ against the UK is $1.310 to 1. Inflation rates for the next year are expected to be 2% in the US and 3% in the UK. Using the purchasing power parity theory calculate the dollar exchange rate in one years' time.

    A.

    1.297
    B.

    1.310
    C.

    1.322
    D.

    1.280
    E.

    1.340

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