Predict the canadian dollar spot exchange rate in a year

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Reference no: EM132209108

Question - The U.S. inflation rate is 3.89% annualized, and the Canadian inflation rate is 2.05% annualized. Today's spot rate of the Canadian dollar is $0.7747. Use the PPP model to predict the Canadian dollar's spot exchange rate in a year. Round to four decimals.

Reference no: EM132209108

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