Question: Question 7 1 pts Assume the current spot rate between the UK and the U5. is 0.765 per $1, the expected ination rate in the

Question 7 1 pts Assume the current spot rate between the UK and the U5. is 0.765 per $1, the expected ination rate in the U.S. is 2.63 percent, and the expected ination rate in the UK is 4.74 percent. If relative purchasing power parity exists, what will the exchange rate be next year? Enter your answer rounded off to FOUR decimal points. Do not enter any currency symbol in th answer box. Question 8 1 pts Assume the current spot rate between the UK and the U5. is 0.735 per $1, the expected ination rate in the U5. is 2.32 percent, and the expected ination rate in the UK is 3.73 percent. If relative purchasing power parity exists, what will the exchange rate be 2 years from now? Enter your answer rounded off to FOUR decimal points. Do not enter any currency symbol in th answer box

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