What do you predict the exchange rate will be in one year


Suppose the spot exchange rate for the Hungarian forint is HUF 152.93. The inflation rate in the United States will be 4.9 percent per year. It will be 8.6 percent in Hungary. What do you predict the exchange rate will be in one year? In two years? In five years? What relationship are you using?

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Finance Basics: What do you predict the exchange rate will be in one year
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