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Inflation and exchange rates suppose the current exchange

Question: Inflation and Exchange Rates. Suppose the current exchange rate for the Russian ruble is RUB 49.35. The expected exchange rate in three years is RUB 51.80. What is the difference in the annual inflation rates for the United States and Russia over this period? Assume that the anticipated rate is constant for both countries. What relationship are you relying on in answering?

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Finance Basics: Inflation and exchange rates suppose the current exchange

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