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Suppose the annual inflation rate in the US is expected to be 5 . 5 % , while it is expected to be 2 .

Suppose the annual inflation rate in the US is expected to be 5.5%, while it is expected to be 2.00% in Japan. The current spot rate (on 3/1/13) for the Japanese Yen (JPY) is $0.01111. If the spot rate of JPY $0.01149 on 31?14, then the USD experienced (BLANK) in "real" purchasing power.
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