Question: The inflation rate in the U.S. is 4%, while the inflation rate in Canada is 3%. The current exchange rate for the Canadian dollar is

The inflation rate in the U.S. is 4%, while the inflation

The inflation rate in the U.S. is 4%, while the inflation rate in Canada is 3%. The current exchange rate for the Canadian dollar is $0.95. According to Purchasing Power Parity, the new exchange rate for the Canadian dollar will be $0.95 O $0.94 $0.96 $0.85

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