Suppose annual inflation rates in the U.S. and Mexico are expected to be 6% and 80%, respectively, over the next several years. If the current spot rate for the Mexican peso is $0.005/Ps, then relative purchasing power parity suggests that the peso's value in 3 years will be approximately ______.

Question

Quizplus · Accepted Answer

The Answer of Suppose annual inflation rates in the U.S. and Mexico are expected to be 6% and 80%, respectively, over the next several years. If the current spot rate for the Mexican peso is $0.005/Ps, then relative purchasing power parity suggests that the peso's value in 3 years will be approximately ______.

Suppose Annual Inflation Rates in the U