2) In the Spot Market, $ 1=J.Yen 108.7 i.e, $/Japanese Yen=108.7 If the Inflation rates in the USA and JAPAN are projected as 1,6% and 0.2% respectively, calculate how many J.Yens you would need to get 1$ after 1 years time, and write which currency has Re-valued and which one has De-valued