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Currently,you Can Exchange €100 for A$132

question 39

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Currently,you can exchange €100 for A$132.66.The inflation rate in Europe is expected to be 3.1 per cent as compared to 3.6 per cent in Australia.Assuming that relative purchasing power parity exists,what should the exchange rate be 5 years from now?


Definitions:

Consumption Function

A mathematical representation showing the link between total consumer expenditure and the gross national income.

Consumption Function

An economic concept that describes the relationship between total consumption and gross national income.

Stock Prices

The cost at which a share of a company is bought or sold in the stock market, reflecting the market's view of its potential for profitability.

Stock Splits

A corporate action in which a company divides its existing shares into multiple shares to boost the liquidity of the shares, though the overall value of the company does not change.

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