The Us Inflation Rate Is Expected To Be Rs 3 Per Cent Annually And That Of India (1)

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The US inflation rate is expected to be Rs.3 per cent annually and that of India is

expected to be 4.5 per cent annually. The current spot rate of US $ in India is Rs.47.4060/US $.

Find the expected rate of US $ in India after one year and after 5 years from now using

purchase power theory of exchange rate.

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