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Suppose that in 2009,the price levels in the United States and Japan were 100.By 2012, the price level in the United States has increased to

Suppose that in 2009,the price levels in the United States and Japan were 100.By 2012, the price level in the United States has increased to 150,while the price level in Japan rose to 200. Suppose the exchange rate between two countries was 1 USD= 1.2 Yen. Note: round your answers to 2 decimals places. A) Find the inflation rate of the United States. The United States inflation rate = B)Find the inflation rate of Japan Japan inflation rate = C)what was the 2009 real exchange rate (from the perspective of Japan)? 2009 real exchange rate = D)what must the new nominal exchange rate have been in 2012 (from the perspective of Japan) if the real exchange rate remained constant? 2012 nominal exchange rate= E) Suppose Japan has a fixed exchange rate system against the American dollar. The initial nominal exchange rate is fixed. As a result, did Japan real exchange rate appreciate or depreciate? Real exchange rate will _____ F) would you except Japan net exports to rise or fall as a result Net exports will ___ G) Is the Japan dollar overvalued or undervalued? Japan dollar is ___

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