Ppp an economic analysis firm has just published projected, Financial Management

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Ppp an economic analysis firm has just published projected

PPP. An economic analysis firm has just published projected inflation rates for the U.S. and Germany for the next five years. U.S. inflation is expected to be 5% per year, and German inflation is expected to be 2% per year. If the current exchange rate is $1.50/€, what should the exchange rates be in two years?

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