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Suppose the spot and three-month forward rates for the yen are 101.17 and 102.22, respectively. a. Is the yen expected to get stronger or weaker?

Suppose the spot and three-month forward rates for the yen are 101.17 and 102.22, 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?

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