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Suppose the exchange rate adjusts so that interest-rate parity holds.Also assume that the interest rate on a one-year Canadian bond is 3 percent and the interest rate on a one-year U.S.bond is 5 percent.
a.If the exchange rate today is 1.40 Canadian dollars per U.S.dollar, what do you expect the exchange rate to be one year from now?
b.Suppose relative purchasing-power parity holds, and the inflation rate in Canada is expected to be 1 percent over the next year.What is the expected inflation rate in the United States?
Richest Medium
The richest medium refers to communication channels that can convey the most information, including non-verbal cues, typically face-to-face communication.
Visual Media
Media that communicates primarily through visual content, including photographs, videos, illustrations, and graphics.
Visual Elements
Components such as images, colors, shapes, and typography used in design to enhance communication.
Mobile Devices
Handheld electronics that have computing capabilities, allowing for voice and data communication, internet access, and various applications.
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