QUESTION 8 Use the following information to answer the next two questions. A Japanese investor notices the expected one year inflation rate in Japan and Mexico is 7% and 5%, respectively. The current spot rates for yen and pesos are as follows: $.14/Mex$, 100/$ What should be the value of pesos in terms of yen at the end of the year according to relative PPP? Assume Japan is the domestic nation. O 0728 O 13.3783 O 14.2667 O 0701 6. If the spot rate is Mex8.074, the yen has deprecated in real terms according to relative PPP True False