Question: The inflation rate in the U.S. is 2%, while the inflation rate in Philippines is 5%. The current exchange rate for the Philippine peso (PHP)

The inflation rate in the U.S. is 2%, while the inflation rate in Philippines is 5%. The current exchange rate for the Philippine peso (PHP) is $0.0320. After supply and demand for the Philippine peso has adjusted in the manner suggested by purchasing power parity, the new exchange rate for the Philippine peso will be:

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