Question: Suppose U.S. inflation is expected to be 4% per year, and U.K. inflation is expected to be be 3% per year. Suppose the current spot

Suppose U.S. inflation is expected to be 4% per year, and U.K. inflation is expected to be be 3% per year. Suppose the current spot rate is S($/) = 1.40. What is the expected spot rate in ten years?

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