Suppose the spot and three-month forward rates for the yen are 101.19 and 102.20, respectively.

a. Is the yen expected to get stronger or weaker?

b. What would you estimate is the difference between the inflation rates of the United States and Japan? (A negative answer 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)

Difference between the inflation rates