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Q: Purchasing Power Parity ( No Answer,   0 Comments )
Question  
Subject: Purchasing Power Parity
Category: Business and Money > Economics
Asked by: robert1605-ga
List Price: $25.00
Posted: 29 Jan 2005 16:33 PST
Expires: 29 Jan 2005 16:45 PST
Question ID: 465560
The inflation rate in the U.S. and Japan are 4% and 2%, respectively
and the current spot rate is $.0083333 per one Japanese yen or 120
Japanese yen per one U.S. dollar.  How much does the U.S. dollar have
to depreciate in order to maintain purchasing power parity?  Be sure
to show your calculations.
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