The Covid-19 and the Ukraine conflict supply issues have caused increases in inflation around the world. The inflation rate in Canada is 7.6 per cent and the inflation rate in Japan is 2.6 per cent. The current exchange rate for the Japanese yen () is C$0.011. After supply and demand for the Japanese yen have adjusted according to purchasing power parity, the new exchange rate for the yen will be:

A$0.0115.

A$0.0123.

None of the choices are correct.

A$0.0127.

A$0.0105.