The exchange rate is currently nz$1.66 based on ppp

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Purchasing Power Parity Theorem (PPPT). The inflation rate in the United States is projected at 3 percent per year. The New Zealand rate is projected to be 5 percent. The exchange rate is currently NZ$1.66. Based on PPP, what is the expected exchange rate in two years? 

Reference no: EM13315803

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