What would the exchange rate be at the end of the year

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Reference no: EM131624015

If the current spot exchange rate is $0.9744 Canadian buys $1 U.S and inflation is expected to be 1 percent over the next year in the United States with the Canadian inflation rate expected to be 5 percent over the same period, what would the exchange rate be at the end of the year using the relative form of the PPP equation?

Reference no: EM131624015

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