Suppose the current exchange rate for the Polish zloty is zl 2.88. The expected exchange rate in three years is zl 2.96. What is the difference in the annual inflation rates for the United States and Poland over this period? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Difference in annual inflation rates %

International Financial Management
14th Edition
ISBN:9780357130698
Author:Madura
Publisher:Madura
Chapter8: Relationships Among Inflation, Interest Rates, And Exchange Rates
Section: Chapter Questions
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Suppose the current exchange rate for the Polish zloty is zl 2.88. The expected
exchange rate in three years is zl 2.96. What is the difference in the annual inflation rates
for the United States and Poland over this period? (Do not round intermediate
calculations and enter your answer as a percent rounded to 2 decimal places, e.g.,
32.16.)
Difference in annual inflation rates
%
Transcribed Image Text:Suppose the current exchange rate for the Polish zloty is zl 2.88. The expected exchange rate in three years is zl 2.96. What is the difference in the annual inflation rates for the United States and Poland over this period? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Difference in annual inflation rates %
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