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Assume that the export price of a Toyota Corolla from Osaka, Japan is 3,000,000. The exchange rate is 115.00/$. The forecast rate of inflation in

Assume that the export price of a Toyota Corolla from Osaka, Japan is 3,000,000. The exchange rate is 115.00/$. The forecast rate of inflation in the US is 2.0% per year, while it is forecast to be 0.0% in Japan. Calculate the dollar price of the Corolla at the end of the year, assuming only 30% exchange rate pass-through.

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$26,086.96

$26,243.48

$26,528.41

$26,608.70

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