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

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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