Problem 8:

Problem 8 Intro Assume that the real interest rate is 1.5% in the U.S. and 1% in Japan. The annual nominal interest rate is 5.7% in the U.S. and 3.3% in Japan. Part 1 | Attempt 1/10 for 10 pts. What is the approximate expected percentage change in the exchange rate (measured in U.S. dollars per yen) according to the Fisher effect and purchasing power parity? 4+ decimals Submit