Question: Question 18 Please use the data below to answer the following question. Expected annual inflation rate in the US 6% (th) Expected annual inflation rate

 Question 18 Please use the data below to answer the following

Question 18 Please use the data below to answer the following question. Expected annual inflation rate in the US 6% (th) Expected annual inflation rate in UK (if) Current Exchange Rate 12% 1 GBP USD 1.75 According to Purchasing Power Parity, one year later, the expected spot price for GBP should be: $1.6563 O $1.8491 $1.7599 O $3,4063 10 pts 10 pts

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