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Interest differential to forecast future spot exchange rate

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Question: Real Economic Activity and Misery. Calculate the country's Misery Index (unemployment + inflation) and then use it like an interest differential to forecast the future spot exchange rate, one year into the future.

a. Japanese yen/U.S. dollar exchange rate in one year

b. Japanese yen/Australian dollar exchange rate in one year

c. Australian dollar/U.S. dollar exchange rate in one year

Reference no: EM131676879

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