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What is the expected spot exchange rate in 8 years

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The US Consumer Price Index (CPI) is currently 132.61 and the Australian CPI is currently 143.87 . Economists expect that in 8 years the American CPI will be 151.56 and the Australian CPI will be 223.78 . The current USD/AUD spot rate is 0.67.

If relative purchasing power parity holds, what is the expected spot exchange rate in 8 years?

Reference no: EM132509181

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