A bundle of goods in Japan costs 2,520,000 while the same goods and services cost $34,000 in the United States. 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., 32.1616)) Current exchange rate $ _______per yen

b. If, over the next year, inflation is 10 percent in Japan and 8 percent in the United States, what will the goods cost next year?

Cost of Goods Japan ______

United States $___________