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Homework: Chapter 9 Homework Question 5, Problem 9-12 (book/static) Part 1 of 3 HW Score: 0%, 0 of 10 points O Points: 0 of 2

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Homework: Chapter 9 Homework Question 5, Problem 9-12 (book/static) Part 1 of 3 HW Score: 0%, 0 of 10 points O Points: 0 of 2 Save Purchasing Power Parity Forecasts. Use the table containing economic, financial, and business indicators to answer the following questions. Assuming purchasing power parity, and assuming that the forecasted change in consumer prices is a good proxy of predicted inflation, forecast the following exchange rates: a. Japanese yen/U.S. dollar in one year b. Japanese yen/Australian dollar in one year c. Australian dollar/U.S. dollar in one year GIDE Assuming purchasing power parity, and assuming that the forecasted change in consumer prices is a good proxy of predicted inflation, forecast the following exchange rates: a. Japanese yen/U.S. dollar in one year The forecast of the spot rate for Japanese yen/U.S. dollar in one year is VS. (Round to two decimal places.) View an example Etext pages Financial calculator 111 Clear all 0 Check answer EUST Question 5 Drohlam 0.12 Data table The table below contains economic, financial, and business indicators from 2015: Country Australia Japan United States Country Australia Japan United States DIT CAGIPpic Forecasting the Pan-Pacific Pyramid: Australia, Japan, and the United States Industrial Gross Domestic Product Production Forecast Forecast Latest Qtr Qtr 2015e 20160 Recent Qtr 4.3% 4.6% 1.6% 4.3% 1.9% 1.9% Year Ago 4.0% 0.9 % 2.1% LICAt pages 3.8% -1.2% 3.8% Consumer Prices Latest 2.1% -0.2% 2.8% 4.1% 2.0% 2.0% Forecast 20150 Print Tinanciar calculator 2.4% 0.0% 2.8% Done 3.5% 1.9% 2.2 % Interest Rates 3-month Latest 6.90 % 0.73 % 4.72% Unemployment Rate Latest Vitar an 4.2% 3.8% 4.7% 1-yr Govt Latest 6.23% 1.65% 4.54% 1 X VHUUR GRDyfor Data table Country Australia Japan United States Trade Balance Last 12 mos Last 12 mos Forecast 15 Country (billion $) (billion $) (% of GDP) Oct 17th Year Ago Australia -13.0 -47.0 -5.7% 1.12 1.33 Japan 98.1 197.5 4.6% 117.00 119.00 United States -810.7 -793.2 -5.6 % 1.00 1.00 Note: Unless otherwise noted, percentages are percentage changes over one year. Rec Qtr = recent quarter. Values for 2015e are estimates or forecasts. Print Done Wan Campio LIGAL pages Tinancial Calculator Vical an UITSUA DO Year Ago 4.0 % 0.9% 2.1% Consumer Prices Latest 2.1% -0.2% 2.8% Forecast. 2015e 2.4% 0.0 % 2.8% Current Account 3-month Latest Interest Rates 1-yr Govt Latest 6.90 % 0.73% 4.72% Current Units (per US$) 6.23% 1.65% 4.54%

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