Question: With E[St] defined as expected spot rate on a future date t,SO as the current spot rate, and hi as the inflation in country i,

With E[St] defined as expected spot rate on a future date

With E[St] defined as expected spot rate on a future date t,SO as the current spot rate, and hi as the inflation in country i, the relative Purchasing Power Parity can be written out in a formula as: Multiple Choice E[St]=SO/[1+(hForeignhDomestic))t E[St]=SO[1+(hForeignhDomestic)]t E[St]=SO[1(hForeignhDomestic)]t E[St]=SO[1+(hForeign+hDomestic)]t E[St]=SO/[1(hForeignhDomestic)]t

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