ssume that the export price of a SubaruXVfrom Japan is 4500000. The exchange rate is 95.60/$. The forecast rate of inflation in the United States is 3.5% per year and is 1.1% per year in Japan. Use this data to answer the following questions on exchange rate pass through.

a. What was the export price for the Subaru XVat the beginning of the year expressed in U.S. dollars?

b. Assuming purchasing power parity holds, what should the exchange rate be at the end of the year?

c. Assuming100% pass-through of exchange rate, what will the dollar price of a Subaru XVbe at the end of the year?

d. Assuming85% pass-through, what will the dollar price of a Subaru XVbe at the end of the year?