About the exchange rates between the three currencies

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Suppose that at the present time, 1 British pound exchanges for 1.4 U.S. dollars and 100 Japanese yen. Over the next decade, Japanese prices remain constant, while inflation doubles American prices, and quadruples British prices. What would the purchasing-power parity theory lead one to expect about the exchange rates between the three currencies 10 years hence?

Reference no: EM131503139

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