Assume the inflation rate in the U.S. is 1.59 percent. The spot rate for a foreign...

Assume the inflation rate in the U.S. is 1.59 percent. The spot rate for a foreign currency is 1.412 while the 1-year forward rate is 1.419. What is the approximate rate of inflation in the foreign country?

2.46%

2.35%

2.28%

2.17%

2.09%

Expert Solution

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jeff jeffy answered 7 months ago

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