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Assume the current spot rate

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Assume the current spot rate between the UK and the U.S. is £0.839 per $1, the expected inflation rate in the U.S. is 1.6 percent, and the expected inflation rate in the UK is 3.21 percent. If relative purchasing power parity exists, what will the exchange rate be 5 years from now?

Reference no: EM133496054

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