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QUESTION
The US inflation rate is expected to be Rs.3 per cent annually and that of India is expected to be 4.5 per cent annually. The current spot rate of US...
The US inflation rate is expected to be Rs.3 per cent annually and that of India is
expected to be 4.5 per cent annually. The current spot rate of US $ in India is Rs.47.4060/US $.
Find the expected rate of US $ in India after one year and after 5 years from now using
purchase power theory of exchange rate.
