In 2021 the exchange rate between the Haitian Gourde and the US dollar is 50 to 1. If Haiti experience inflation at the rate of 17% while the US experience inflation at a rate of only 4.7% per year. Assuming the exchange rate will vary at the same rate as inflation, what will be the exchange rate in 2026?
In 2021 the exchange rate between the Haitian Gourde and the US dollar is 50 to 1. If Haiti experience inflation at the rate of 17% while the US experience inflation at a rate of only 4.7% per year. Assuming the exchange rate will vary at the same rate as inflation, what will be the exchange rate in 2026?
Economics (MindTap Course List)
13th Edition
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Roger A. Arnold
Chapter34: International Finance
Section34.3: Fixed Exchange Rates
Problem 3ST
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: In 2021 the exchange rate between the Haitian Gourde and the US dollar is 50 to 1. If Haiti experience inflation at the rate of 17% while the US experience inflation at a rate of only 4.7% per year. Assuming the exchange rate will vary at the same rate as inflation, what will be the exchange rate in 2026?
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