Use the table containing economic, financial, and business indicators to answer the following questions. Calculate the...
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Use the table containing economic, financial, and business indicators to answer the following questions. Calculate the country's Misery Index (unemployment + inflation) and then use it like an interest differential to forecast the future spot exchange rate, one year into the future. a. Japanese yen/U.S. dollar exchange rate in one year b. Japanese yen/Australian dollar exchange rate in one year c. Australian dollar/U.S. dollar exchange rate in one year Calculate the country's Misery Index (unemployment + inflation) and then use it like an interest differential to forecast the future spot exchange rate, one year into the future. The Misery Index for Australia is %. (Round to two decimal places.) The Misery Index for Japan is %. (Round to two decimal places.) The Misery Index for the U.S. is%. (Round to two decimal places.) a. Japanese yen/U.S. dollar exchange rate in one year The future spot Japanese yen/U.S. dollar exchange rate in one year is ¥/S. (Round to two decimal places.) b. Japanese yen/Australian dollar exchange rate in one year The future spot Japanese yen/Australian dollar exchange rate in one year is ¥/AS. (Round to two decimal places.) c. Australian dollar/U.S. dollar exchange rate in one year The future spot Australian dollar/U.S. dollar exchange rate in one year is A$ $. (Round to four decimal places.) The table below contains economic, financial, and business indicators from 2015: Country Australia Japan United States Country Australia Japan United States Forecasting the Pan-Pacific Pyramid: Australia, Japan, and the United States Latest Qtr 4.6% 1.7% 1.9 % Year Ago 4.9 % 0.7% 2.7% Gross Domestic Product Forecast 2015e Qtr 4.2 % -1.4 % 4.3 % Consumer Prices Latest 2.3% -0.1 % 2.2 % 4.1% 2.3% 2.3% Forecast 2015e 2.2% 0.0% 3.5 % Forecast 2016e 3.9% 2.4% 2.1% Industrial Production Recent Qtr 4.6% 4.2 % 2.4% 3-month Latest Unemployment Rate Interest Rates 6.76 % 0.65 % 4.74% Latest 4.3% 3.9% 4.5 % 1-yr Govt Latest 6.19% 1.62% 4.58 % Country Australia Japan United States Trade Balance Last 12 mos (billion $) -12.7 98.2 -810.9 Current Account Last 12 mos (billion $) -46.5 197.2 -793.2 Forecast 15 (% of GDP) -5.6 % 4.7% -5.6 % Current Units (per US$) Oct 17th 1.11 116.00 1.00 Year Ago 1.31 119.00 1.00 Note: Unless otherwise noted, percentages are percentage changes over one year. Rec Qtr = recent quarter. Values for 2015e are estimates or forecasts. Use the table containing economic, financial, and business indicators to answer the following questions. Calculate the country's Misery Index (unemployment + inflation) and then use it like an interest differential to forecast the future spot exchange rate, one year into the future. a. Japanese yen/U.S. dollar exchange rate in one year b. Japanese yen/Australian dollar exchange rate in one year c. Australian dollar/U.S. dollar exchange rate in one year Calculate the country's Misery Index (unemployment + inflation) and then use it like an interest differential to forecast the future spot exchange rate, one year into the future. The Misery Index for Australia is %. (Round to two decimal places.) The Misery Index for Japan is %. (Round to two decimal places.) The Misery Index for the U.S. is%. (Round to two decimal places.) a. Japanese yen/U.S. dollar exchange rate in one year The future spot Japanese yen/U.S. dollar exchange rate in one year is ¥/S. (Round to two decimal places.) b. Japanese yen/Australian dollar exchange rate in one year The future spot Japanese yen/Australian dollar exchange rate in one year is ¥/AS. (Round to two decimal places.) c. Australian dollar/U.S. dollar exchange rate in one year The future spot Australian dollar/U.S. dollar exchange rate in one year is A$ $. (Round to four decimal places.) The table below contains economic, financial, and business indicators from 2015: Country Australia Japan United States Country Australia Japan United States Forecasting the Pan-Pacific Pyramid: Australia, Japan, and the United States Latest Qtr 4.6% 1.7% 1.9 % Year Ago 4.9 % 0.7% 2.7% Gross Domestic Product Forecast 2015e Qtr 4.2 % -1.4 % 4.3 % Consumer Prices Latest 2.3% -0.1 % 2.2 % 4.1% 2.3% 2.3% Forecast 2015e 2.2% 0.0% 3.5 % Forecast 2016e 3.9% 2.4% 2.1% Industrial Production Recent Qtr 4.6% 4.2 % 2.4% 3-month Latest Unemployment Rate Interest Rates 6.76 % 0.65 % 4.74% Latest 4.3% 3.9% 4.5 % 1-yr Govt Latest 6.19% 1.62% 4.58 % Country Australia Japan United States Trade Balance Last 12 mos (billion $) -12.7 98.2 -810.9 Current Account Last 12 mos (billion $) -46.5 197.2 -793.2 Forecast 15 (% of GDP) -5.6 % 4.7% -5.6 % Current Units (per US$) Oct 17th 1.11 116.00 1.00 Year Ago 1.31 119.00 1.00 Note: Unless otherwise noted, percentages are percentage changes over one year. Rec Qtr = recent quarter. Values for 2015e are estimates or forecasts.
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Related Book For
Fundamentals of Multinational Finance
ISBN: 978-0205989751
5th edition
Authors: Michael H. Moffett, Arthur I. Stonehill, David K. Eiteman
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