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Question 47 (1 point) ) If the exchange rate between the U.S. dollar and the Euro is $1.64 per Euro and the annual rate of inflation is 2.82 percent in the United States and 4 percent in Europe, what will be U.S dollar per Euro exchange rate in one year? (Express your answer as Xx.xx) Your Answer: Answer
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Answer #1

The USD per Euro exchange rate in a year = 1.64*1.0282/1.04

The USD per Euro exchange rate in a year = 1.62

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