About the exchange rate, Suppose the U.S.-EU exchange rate

About the exchange rate

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Reference no: EM131391779

Suppose the U.S.-EU exchange rate is $1.10 per Euro, the U.S. has 5% inflation, and the EU has 10% inflation. Under these conditions the real U.S.-EU exchange rate, rounded to the nearest cent, is approximately:____?

Reference no: EM131391779

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