Firm has just published projected inflation rates

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PPP. An economic analysis firm has just published projected inflation rates for the U.S. and Germany for the next five years. U.S. inflation is expected to be 5% per year, and German inflation is expected to be 2% per year. If the current exchange rate is $1.50/€, what should the exchange rates be in two years?

Reference no: EM131976930

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