The Indonesian economy is predicted to average 64% per annum inflation over the next two years.If the forecast inflation for Australia over the same period is 2.5% per annum,how much will a rupiah cost you in two years' time if the current exchange rate is $0.1293/rupiah and PPP is maintained?
A) $0.0505
B) $0.0808
C) $0.3310
D) $0.2069
Correct Answer:
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