Suppose the spot exchange rate for the Hungarian forint is HUF 203.74. The infla

Question

Suppose the spot exchange rate for the Hungarian forint is HUF 203.74. The inflation rate n the United States will be 1.1 percent per year It will be 4.1 percent in Hungary. What do you predict the exchange rate will be in one year? (Round your answer to 2 decimal places. (e.g., 32.16)) Exchange rate HUF/$ What do you predict The exchange rate will be in two years? (Round your answer to 2 decimal places. (e.g., 32.16)) Exchange rate HUF/$ What do you predict The exchange rate will be in five years? (Round your answer to 2 decimal places. (e.g., 32.16)) Exchange rate HUF/$

Explanation / Answer

Suppose the spot exchange rate for the Hungarian forint is HUF 203.74. The infla

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