Suppose the current exchange rate for the russian ruble is


Suppose the current exchange rate for the Russian ruble is RUB 30.15. The expected exchange rate in three years is RUB 33.86. Assume that the anticipated inflation rate is constant for both countries.

Required:

What is the difference in the annual inflation rates for the United States and Russia over this period?

 

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Finance Basics: Suppose the current exchange rate for the russian ruble is
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