Purchasing power parity- inflation-exchange rate

Reference no: EM1345770

Assume that the inflation rate in united States is 4 percent and in Canada it is 5 percent. What would you expect is happening to the exchange rate between United States and Canadian dollars?

Reference no: EM1345770

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Purchasing power parity- inflation-exchange rate : Assume that the inflation rate in united States is 4 percent and in Canada it is 5 percent. What would you expect is happening to the exchange rate between United States and Canadian dollars?

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