13. International Fisher Forecasts. Assuming International Fisher applies to the coming year, forecast the following future spot exchange rates using the government bond rates for the respective country currencies:

A. Japanese yen/US dollar in one year

B. Japanese yen/Australian dollar in one year

C. Australian dollar/US dollar in one year.

	Gross Domestic Product				Industrial Production	Unemployment Rate
Country	Latest Qtr	Qtr	Forecast 2007e	Forecast	Recent Qtr	Latest
				2008e
Australia	4.30%	3.80%	4.10%	3.50%	4.60%	4.20%
Japan	1.60%	-1.20%	2.00%	1.90%	4.30%	3.80%
United States	1.90%	3.80%	2.00%	2.20%	1.90%	4.70%
	Consumer Prices			Interest Rates
Country	Year Ago	Latest	Forecast 2007e	3 month Latest	1 yr Govt Latest
Australia	4.00%	2.10%	2.40%	6.90%	6.23%
Japan	0.90%	-0.20%	0.00%	0.73%	1.65%
United State	2.10%	2.80%	2.80%	4.72%	4.54%
	Trade Balance	Current Account		Current Units (per US$$)
Country	Last 12 mos (billion $)	Last 12 mos (billion $)	Forecast 07 (% of GDP)	Oct 17th	Year Ago
Australia	-13	-47	-5.70%	1.12	1.33
Japan	98.1	197.5	4.60%	117	119
United State	-810.7	-793.2	-5.60%	1	1