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- Suppose the current U.S.-Japan exchange rate is 0.0092 U.S. dollar/yen. Now, suppose that U.S. goods and services rise in price by 5%, while Japanese
- Suppose the current U.S.-Japan exchange rate is 0.0092 U.S. dollar/yen. Now, suppose that U.S. goods and services rise in price by 5%, while Japanese goods and services show a price increase of 2%. According to purchasing power parity, what will be the resulting change in the U.S. dollar/yen exchange rate?
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