The Ratio of Expected Spot Rate to Current Spot Rate $\le$

question 96

Multiple Choice

The ratio of expected spot rate to current spot rate for $ $\le$ is 1.02 and the inflation rate in the U.S.is 5%.What is the approximate inflation rate in the United Kingdom?

• A)1.3%
• B)2.9%
• C)4.1%
• D)7.0%