International Fischer Forecasts. Use the table containing economic, financial, and business indicators to answer the following questions. Assuming International Fischerone version of Purchasing Power Parityapplies to the coming year, forecast the following future spot exchange rates using the government bond rates for the respective country currencies:

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

The table below contains economic, financial, and business indicators from 2015: Forecasting the Pan-Pacific Pyramid: Australia, Japan, and the United States Industrial Unemployment Gross Domestic Product Production Rate Forecast Forecast Country Latest Qtr Qtr 2015e 20160 Recent Qtr Latest Australia 4.6 % 4.2 % 4.5 % 3.4 % 4.6 % 4.3 % 2.1 % -1.2 % Japan United States 2.3 % 2.2 % 4.5 % 3.8 % 2.4 % 3.5 % 2.3 % 2.8 % 2.3 % 4.5 % Consumer Prices Interest Rates Forecast 3-month 1-yr Govt Year Ago Latest 2015e Country Australia Latest Latest 4.2 % 2.7 % 2.5% 6.96 % 6.21 % -0.2 % 0.0 % Japan United States 0.7 % 2.7 % 0.74 % 1.64 % 2.8 % 3.4 % 4.94 % 4.53 % Trade Balance Current Account Current Units (per USS) Forecast 15 Last 12 mos (billion $) Last 12 mos (billion $) Country (% of GDP) Oct 17th Year Ago Australia - 12.6 -46.7 -5.8 % 1.12 1.39 98.2 Japan United States 4.4 % 117.00 197.7 -793.2 -810.8 120.00 1.00 -5.6 % 1.00 Note:Unless otherwise noted, percentages are percentage changes over one year. Rec Qtr = recent quarter. Values for 2015e are estimates or forecasts