Why purchasing power parity is the most useful way to, Financial Management

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Why purchasing power parity is the most useful way to

1. You invest $ 4,421 in an account today. You make no additional deposits into the account. One year from today there is $ 5,282 in the account. What is the nominal interest rate that you earned on your money?

2. Why Purchasing Power Parity is the most useful way to forecast exchange rate? Please explain more detail.

3. Why is inverted yield curve interpreted as a negative forecast for economic growth?

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