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MCS,PHD
Argosy University/ Phoniex University/
Nov-2005 - Oct-2011
Professor
Phoniex University
Oct-2001 - Nov-2016
A bundle of goods in Japan costs A??Y2,065,300 while the same goods and services cost $24,100 in the United States.
| a. |
If purchasing power parity holds, what is the current exchange rate of U.S. dollars for yen? (Round your answer to 4 decimal places. (e.g., 32.1616)) |
| Â Â Current exchange rate | $Â Â per yen |
| b. |
If, over the next year, inflation is 7 percent in Japan and 5 percent in the United States, what will the goods cost next year? |
| Â | Â Â Â Â Â Â Â Â Â Â Â Â Â Â Cost of Goods |
| Â Â Japan | A??YÂ Â Â |
| Â Â United States | $Â Â Â |
| Â | |
| c. |
Will the dollar depreciate or appreciate relative to the yen over this time period? |
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| Â | Â | ||||
| Â |
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