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Economics
Economics
Easy
The current USD/GBP spot rate is 1.28. US expected inflation is 3.5% and UK expected inflation is 2.0% over the next year. Based on relative purchasing power parity, the expected USD/GBP spot rate in one year is closest to:
A
1.299
B
1.261
C
1.280
D
1.319
Select an answer to continue
Tags
#ppp
#relative-ppp
#exchange-rate-forecasting
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