Question: If the price level increases by 1% in Japan, while the US price level increases by 10%, then Purchasing Power Parity predicts that the US

If the price level increases by 1% in Japan, while the US price level increases by 10%, then Purchasing Power Parity predicts that the US dollar will ___ versus the Japanese yen: appreciate by about 10% appreciate by about 8% depreciate by about 9% depreciate by about 10% depreciate by about 8% appreciate by about 9%

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