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What is the expected spot exchange rate in two years

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Problem - The US Consumer Price Index (CPI) is currently 144.82 and the Australian CPI is currently 129.62 . Economists expect that in 2 years the American CPI will be 164.64 and the Australian CPI will be 218.37. The current USD/AUD spot rate is 0.62. If relative purchasing power parity holds, what is the expected spot exchange rate in 2 years?

Reference no: EM132980571

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