the expected inflation rate in the us is 3% while the expected inflation rate in Japan is 1.3%. the current spot rate for the Japanese yen is $0.0075 per yen. after supply and demand for the Japanese yen have adjusted in the manner suggested by relative purchasing power parity, calculate the new spot exchange rate for the yen.

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Relative Purchasing Power Parity PPP suggests that the exchange rate s... View the full answer