Which one of the following statements is true if relative PPP held for a currency...
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Finance
Which one of the following statements is true if relative PPP held for a currency pair?
The change in the nominal exchange rate will be related to the difference between the interest rates.
The change in the nominal exchange rate will be related to the difference between the inflation rates.
If the consumer price index for the United States rises from 150 at the beginning of a year to 155 at the end of the year, how much inflation was there in the United States during that year? Report the answer as a percentage rounded to two decimal places without the % symbol. For example an answer of 7.232% will be reported as 7.32.
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