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 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 [ 1$. (Round to two decimal places.) b. Japanese yen/Australian dollar in one year The forecast of the cross rate for Japanese yen/Australian dollar in one year is YO/A$. (Round to two decimal places.) C. Australian dollar/U.S. dollar in one year The forecast of the spot rate for Australian dollar/U.S. dollar in one year is $1$. (Round to four decimal places.) 11/17/21, 2:00 AM Data Table The table below contains economic, financial, and business indicators from 2015: Forecasting the Pan-Pacific Pyramid: Australia, Japan, and the United States Industrial Gross Domestic Product Production Forecast Forecast Latest Qtr Qtr 2015e 2016e Recent Qtr Unemployment Rate Country Latest Australia 4.1 % 3.7 % 4.8 % 3.3 % 4.5 % 4.5 % 2.3 % -1.5 % 2.3 % 2.1 % 4.8 % 3.6 % Japan United States 2.2 % 3.7 % 2.3 % 2.6 % 2.3 % 4.6 % Interest Rates Consumer Prices Forecast 3-month Latest 2015e Latest Country Australia Year Ago 4.5 % 1-yr Govt Latest 6.28 % 1.65 % 2.1 % 2.3 % 6.85 % 0.69 % Japan 0.8 % -0.4 % 0.0 % United States 2.9 % 2.8 % 2.9 % 4.74 % 4.54 % Trade Balance Current Account Current Units (per US$) Last 12 mos (billion $) -46.5 Country Australia Japan Oct 17th Last 12 mos (billion $) -12.9 98.6 Forecast 15 (% of GDP) -5.6 % Year Ago 1.11 1.37 197.9 4.4 % 115.00 121.00 United States -810.7 -793.9 -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. . https://mylab.pearson.com/Student/Player Test.aspx?testId=236290968¢erwin=yes 1/2