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Calculating FOREX rates with purchasing power parity theory (PPP) and the international Fisher effect theory.

1. If the price of GBP in Euros is euro 1.18/ pound and $1.45/pound. Find the dollar-euro exchange rate, using the USD as the base currency.

2. Compare also contrast purchasing power parity with the international Fisher effect as well as their impact on the determination of FOREX rates.

Business Economics, Economics

  • Category:- Business Economics
  • Reference No.:- M917811

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