As of today, the spot exchange rate is $0\mathrm{.}65/$ and the rates of inflation expected to prevail for the next year in Japan is $1\%$ and $2\%$ in the euro zone. What is the forecast for what the exchange rate will be in one year if the PPP holds?Question $7$

As of today, the spot exchange rate is $0\mathrm{.}65/$ and the rates of inflation

expected to prevail for the next year in Japan is $1\%$ and $2\%$ in the euro zone.

What is the forecast for what the exchange rate will be in one year if the PPP

holds?