Currently you can exchange 100 for euro7542 the inflation, Financial Management

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Currently you can exchange 100 for euro7542 the inflation

Currently, you can exchange $100 for €75.42. The inflation rate in Euroland is expected to be 3.8 percent as compared to 2.1 percent in the U.S. Assuming that relative purchasing power parity exists, what should the exchange rate be 2 years from now?

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