1)If the inflation rates in the British pound and the US \$ are 4%...

Question

# 1)If the inflation rates in the British pound and the US \$ are 4%...

1)If the inflation rates in the British pound and the US \$ are 4% and 1% respectively, while the exchange rate is 1 pound exchanges for \$2, what will the future spot rate be?

2) What is the meaning of the above in the context of PPP?

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10,000 step-by-step explanations

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## Step-by-step explanation

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10,000 step-by-step explanations

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## Step-by-step explanation

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