Question: I got a right, but need help with b. A bundle of goods in Japan costs 3,326,500 while the same goods and services cost $34,000
I got "a" right, but need help with "b".
| A bundle of goods in Japan costs 3,326,500 while the same goods and services cost $34,000 in the United States. |
| a. | If purchasing power parity holds, what is the current exchange rate of U.S. dollars for yen? (Round your answer to 4 decimal places. (e.g., 32.1616)) |
| Current exchange rate | 0.0102 $ per yen |
| b. | If, over the next year, inflation is 9 percent in Japan and 5 percent in the United States, what will the goods cost next year? |
| Cost of Goods | |
| Japan | |
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