Solved: What is expected exchange rate of purchasing power parity, International Economics

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What is expected exchange rate of purchasing power parity

Question:

Assume inflation is expected to be 8 percent in New Zealand next year compared with 4 percent in France. If the New Zealand dollar value of a euro is $0.400, what is the expected exchange rate one year from now based on purchasing power parity?

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International Economics: What is expected exchange rate of purchasing power parity

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