A bundle of goods in Japan costs 2,534,000 while the same goods and services cost $24,500 in the United States.

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

_______ per yen
b. If, over the next year, inflation is 4 percent in Japan and 6 percent in the United States, what will the goods cost next year?

Japan=_________%

United States= _________%
c. Will the dollar depreciate or appreciate relative to the yen over this time period?