Between 1982 and 2006, the /$ exchange rate moved from 249.05/$ to 116.34. During this same...

 

Transcribed Image Text:

Between 1982 and 2006, the /$ exchange rate moved from 249.05/$ to 116.34. During this same 25-year period, the consumer price index (CPI) in Japan rose from 80.75 to 97.92 and the U.S. I CPI rose from 56.06 to 117.07. If PPP had held over this period, what would the X/$ exchange rate been in 2006? Between 1982 and 2006, the /$ exchange rate moved from 249.05/$ to 116.34. During this same 25-year period, the consumer price index (CPI) in Japan rose from 80.75 to 97.92 and the U.S. I CPI rose from 56.06 to 117.07. If PPP had held over this period, what would the X/$ exchange rate been in 2006?