Question: The expected one - year inflation rate is 3 % in the US and 1 % in Egypt. According to PPP , what is expected

The expected one-year inflation rate is 3% in the US and 1% in Egypt. According to PPP, what is expected to happen to the value of the Egyptian pound relative to the US dollar?
The Egyptian pound is expected to depreciate by approximately 2%
The Egyptian pound is expected to appreciate by approximately 2%
The expected one-year inflation rate is 3% in the US and

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