Question: Problem 2 (2 points) Between 1980 and 1995, the f$ exchange rate moved from 226.63f$ to 93.96f$. During the same 15-year period, the consumer price

Problem 2 (2 points) Between 1980 and 1995, the f$ exchange

Problem 2 (2 points) Between 1980 and 1995, the f$ exchange rate moved from 226.63f$ to 93.96f$. During the same 15-year period, the consumer price index (CPI) in Japan rose from 91.0 to 119.2 and the U.S. CPI rose from 82.4 to 152.4. I. IfPPP has held over this period, what would the f$ exchange rate have been in 1995 ? (1 point) 2. What happened to the real value of the yen in term of dollars during this period? Explain your answer. (1 point)

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