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Dear sir,
In Mar/June’17 question no 2.b why the spot rate is calculated by the following formula .1430*(1.06/1.03) instead of 0.1430*(1.03/1.06) as the eurozone should be considered as the base currency, isn’t it?
Thank you
The exchange rate is quoting the € against $1, and therefore Hb is the dollar (Wirtonia) inflation rate, and Hc is the eurozone inflation rate.
It may help you to watch my free lectures on this.
