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The US Inflation Rate for the Coming Year Is 2

Question 44

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The U.S. inflation rate for the coming year is 2%. The German inflation rate for the coming year is 42%. You can buy 1.7 D-marks with 1 U.S. dollar today. Based on relative purchase power parity, how many D-marks will you be able to buy with 1 dollar in 1 year?

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