Suppose that the inflation rate in the united state and, Ask an Expert

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Suppose that the inflation rate in the United State and japan are 4 percent and 2 percent, respectively and that the current spot rate is $.0083333 per Japanese yen or 120 Japanesse yen per one percent dollar. How much should the U.S. dollar depreciate in order to maintain purchasing power parity?

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International Economics, Economics

Category:- International Economics
Reference No.:- M9293127

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