Question: The current spot rate between euroland and the U.S. is .82 per $1.00. Expected inflation in euroland is 6 percent per year and expected inflation

The current spot rate between "euroland" and the U.S. is €.82 per $1.00. Expected inflation in "euroland" is 6 percent per year and expected inflation in the U.S. is 3 percent per year. If relative purchasing power parity holds, what is the expected in 4 years?
a) €.870 per $1.00
b) €.896 per $1.00
c) €.923 Per $1.00
d) €.951 per $1.00

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