What is the expected future spot exchange rate

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Reference no: EM13270200

As a macroeconomic project at the FreedomWorks think-tank it is determined that the inflation rate in Italy is currently is running at 7.94% while the inflation rate in the United States is higher at 9.39%. The research organization was hired by the current administration to determine the longer term effects on the trade deficit and international indebtedness so it is interested in exchange rates now and the effects of predicted exchange rate on future macroeconomic variables. The spot exchange rate is determined to be .... $1.4375/€, what is the expected future spot exchange rate of the € six years from now? Use European or indirect quotes in your calculations.

Reference no: EM13270200

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