Question: An analyst expects that the US consumption bundle will increase in price from $100 to $104 across 2020. The equivalent Japanese consumption bundle is expected
An analyst expects that the US consumption bundle will increase in price from $100 to $104 across 2020. The equivalent Japanese consumption bundle is expected to increase in price from 10,000 to 10,200 across 2020. By how much would the Yen need to strengthen or weaken relative to the USD if relative purchasing power parity is satisfied during 2020? Provide your answer as a percentage to two decimal places. For example for a strengthening of 3.8511 percent write 3.85 and for a weakening of 4.2611 percent write -4.26.
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