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What is the real currency value change of the aud

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Suppose inflation rates in the USA and Australia are expected to be 3% and 5.5%, respectively. If the spot rate is AUD 1.331 = USD 1 and exchange rate one year later changes to AUD 1.315 = USD 1, what is the real currency value change of the AUD in terms of USD?

Reference no: EM132646750

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