Suppose that last years value of the yen was $0.0087. Today, the one-year inflation rate in the United States is 4 percent, and the one-year inflation rate in the Japan is 5 percent. a. What should the currency movement on the yen over the last year be? Show your work. b. If todays actual spot rate on the yen is $.0085, is the yen overvalued or undervalued? Are we below or above the PPP line? c. Explain how PPP will be restored.