Question: The current spot rate between the pound and dollar is 7595/$. The expected inflation rate in the US is 2.91 percent and the expected Inflation

The current spot rate between the pound and dollar is 7595/$.

The current spot rate between the pound and dollar is 7595/$. The expected inflation rate in the US is 2.91 percent and the expected Inflation rate in the UK is 1.89 percent. Assuming relative purchasing power parity holds, what will the exchange rate be next year? E76725

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