1. A package of goods costs Yen 4,235,000 in Japan, while the same goods and services cost US$31,200 in the United States. 
2. 
   
3. a. If purchasing power parity holds, what is the current exchange rate for the US dollar to the yen?
4. 
   
5.  b. If inflation is 8 percent in Japan and 7 percent in the United States next year, what will be the cost of goods next year?

Answer rating: 100% (QA)

a Determine the current exchange rate for the US dollar to the yen Cost of goods in Japan is Yen 423... View the full answer