ns Suppose Purchasing Power Parity holds and that the nominal exchange rate between the US dollar and the Ugandan shilling is 3000s/$1 today. If Uganda had 4% inflation for the year while we had 2%, what would the nominal exchange rate be next year? Answer to the nearest shilling/dollar (eg. 2775 or 5,437,682) [Hint: E = eP'/P]

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