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The inflation rate in Canada is 3 percent while the inflation rate in Japan is 10 percent. The current exchange rate for the Japanese yen

The inflation rate in Canada is 3 percent while the inflation rate in Japan is 10 percent. The current exchange rate for the Japanese yen () is $0.0075. After supply and demand for the Japanese yen have adjusted in the manner suggested by purchasing power parity, the new exchange rate for the yen will be: a. $0.0076. b. $0.0073. c. $0.0070. d. $0.0066.

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