Question: The present spot exchange rate is Real 1.00 = $ 0.25 and the rates of inflation expected to prevail for the next year in the

The present spot exchange rate is Real 1.00 = $ 0.25 and the rates of inflation expected to prevail for the next year in the U.S. is 3 percent and 7 percent in Brazil. What will be theexchange rate one year from now?

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