What should the expected ppp

Reference no: EM13267372

Chase Econometrics has just published projected inflation rates for the United States and Euro-zone for the next five years. U.S. inflation is expected to be 2% per year, and Euro-zone inflation is expected to be 3.5% per year. If the current exchange rate is 1.4500 $ per €, what should the expected PPP implied EUR/USD exchange rates be five years from now?

a
1.3479

b
1.5597

c
1.4289

d
1.4713

Reference no: EM13267372

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