$4$

A bundle of goods in Japan costs $3,012,000$ while the same goods and services cost $$27,200$ in the United States.

$1$

a$.$ If purchasing power parity holds, what is the current exchange rate of U$.$S$.$ dollars for yen?

points

b$.$ If$,$ over the next year, inflation is $6$ percent in Japan and $3$ percent in the United States, what will the goods cost next year?

c$.$ Will the dollar depreciate or appreciate relative to the yen over this time period?

Answer is complete but not entirely correct.

Complete this question by entering your answers in the tabs below.

Required $A$

If purchasing power parity holds, what is the current exchange rate of U$.$S$.$ dollars for yen? $($Round your answer to $4$ decimal places. $(e.g.,32\mathrm{.}1616))$