Percentage change in spot rates

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Collect quarterly inflation data for U.S. and UK for the last five years (2011 - 2015). Collect quarterly spot exchange rates of British Pound ($/£). Calculate the inflation differentials between U.S. and UK, and the percentage change in spot rates. Plot those data points on a graph. Comment on if the Purchasing Power Parity is satisfied.

Reference no: EM131068910

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