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Inflation is expected to be 2% per year in the USA and 1% per year in Japan. a) If the current FX rate is 120/$,
- Inflation is expected to be 2% per year in the USA and 1% per year in Japan. a) If the current FX rate is 120/$, what will be the FX rate in one year according to RPPP? b) If the price of a Big Mac in USA is $4.25 and the price in Japan is 500, how much is the yen overvalued against the APPP FX rate?
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Cost Benefit Analysis
Authors: Harry F. Campbell, Richard P.C. Brown
3rd Edition
1032320753, 9781032320755
