Suppose the annual inflation rate in the US is expected to be 2.5%, while it...
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Suppose the annual inflation rate in the US is expected to be 2.5%, while it is expected to be 18.00 % in Mexico. The current spot rate (on 1/1/XO) for the Mexican Peso (MXN) is $0.1000. If the spot rate of MXN turns out to be $0.090 on 1/1/X1, then the MXN experienced in'real' purchasing power. gain loss no change
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