Suppose the dollar-yen exchange rate is 0.01 dollar per yen. Since the base year, inflation has been

Question:

Suppose the dollar-yen exchange rate is 0.01 dollar per yen. Since the base year, inflation has been 2 percent in Japan and 10 percent in the United States. What is the real exchange rate? In real terms, has the dollar appreciated or depreciated against the yen?

Exchange Rate
The value of one currency for the purpose of conversion to another. Exchange Rate means on any day, for purposes of determining the Dollar Equivalent of any currency other than Dollars, the rate at which such currency may be exchanged into Dollars...

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