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Rate of real exchange rate depreciation

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Reference no: EM131456930

If the real exchange rate between Australia and Vietnam is 1.1 and the inflation differential between them is -1%, given a 15% speed of convergence, what would be the rate of real exchange rate depreciation?

a) -1.36%

b) 1.36%

c) 15%

d) -15%

Reference no: EM131456930

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