Suppose that the spot rate is A$1 = 0.3325 pounds.If the inflation rate next year is expected to be 9 per cent in Australia and 4 per cent in the UK what is next year's spot rate expected to be?
A) 0.1732
B) 0.3712
C) 0.3172
D) The spot rate cannot be calculated as not enough information is provided.
Correct Answer:
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