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The current spot exchange rate for Japanese yen is 107/$. Long-run inflation in Japan is estimated at 0.5 percent annually and 1.8 percent in the

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The current spot exchange rate for Japanese yen is 107/$. Long-run inflation in Japan is estimated at 0.5 percent annually and 1.8 percent in the United States. If PPP is expected to hold between the two countries, what spot exchange should one forecast four years into the future? O 101.6/$ O 105.6/$ 108.4/$ O 112.6/$

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