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Question
At the beginning of the year the exchange rate between the Brazilian Real and the U.S. dollar was 2.2 Reals per dollar. Over the year Brazilian inflation was 12% and U.S. inflation was 4%. If purchasing power parity holds, at year-end the exchange rate should be approximately ________________ dollars per Real.
A. 2.3913
B. 0.4895
C. 2.8498
D. 0.4182
E. 0.3440
Answer
This answer is hidden. It contains 36 characters.
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