Suppose ppp and ife exist between the us dollar and the, Financial Management

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Suppose ppp and ife exist between the us dollar and the

Suppose PPP and IFE exist between the US Dollar and the Euro (EUR).

On a certain date, money and foreign exchange markets are as follows:

US One Year Interest Rate 2.5%

Italian Interest Rate 7.0%

US Inflation Rate 1.0%

Spot Rate (USD/EUR) 1.15

WHAT IS THE INFLATION RATE IN ITALY?

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