Purchasing Power Parity If the Current Spot Rate Between the U.S.dollar

question 69

Multiple Choice

Purchasing Power Parity If the current spot rate between the U.S.dollar and the Swedish krona was $1 = 7.5423 krona,and if the inflation rate in the United States was 5 percent and in Sweden it was 2 percent,then what would be the expected spot rate in one year?

• A)$0.1366
• B)$0.1326
• C)$7.7487
• D)$0.1356

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