Chartered Financial Analyst Level 2
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| Country | Currency | Expected Inflation Rate |
|---|---|---|
| Australia | AUD | 3% |
| Japan | JPY | 1% |
| US | USD | 4% |
According to ex ante purchasing power parity (PPP):
A
the JPY/AUD (the amount of JPY per 1 AUD) exchange rate is expected to decrease by 2%.
B
the USD/AUD (the amount of USD per 1 AUD) exchange rate is expected to decrease by 1%.
C
the JPY/USD (the amount of JPY per 1 USD) exchange rate is expected to increase by 3%.