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5. Suppose that in the beginning of the year, $1 buys 80 yen (= ). The expected annual inflation rates are 6% in Japan and
5. Suppose that in the beginning of the year, $1 buys 80 yen (= ). The expected annual inflation rates are 6% in Japan and 3% in the U.S., respectively. Calculate the yen-dollar (= /$) exchange rate at the end of the year
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