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Suppose the spot and three - month forward rates for the yen are 7 9 . 0 5 and 7 8 . 5 2 ,

Suppose the spot and three-month forward rates for the yen are 79.05 and 78.52, respectively. What would you estimate is the difference between the annual inflation rates of the United States and Japan? (A greater inflation rate in Japan is a negative answer and should be indicated by a minus sign. Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g.,32.16.)

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