If the annual inflation rate is 35 in the us and 2 in the

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If the annual inflation rate is 3.5% in the U.S. and 2% in the U.K, and the dollar depreciated against the pound by 2.5%, then the real exchange rate, assuming that PPP initially held, is?

What can you conclude about the competitiveness of the US economy after this depreciation in dollars?Why?

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