From base price levels of 100 in 2000 japanese and us price, Ask an Expert

Management Studies

From base price levels of 100 in 2000, Japanese and U.S. price levels in 2003 stood at 102 and 106, respectively.

a. If the 2000 $:¥ exchange rate was $0.007692, what should the exchange rate be in 2003?

b. In fact, the exchange rate in 2003 was ¥ 1 = $0.008696. What might account for the discrepancy? (Price levels were measured using the consumer price index.)

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Business Management, Management Studies

Category:- Business Management
Reference No.:- M92033040

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