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The inflation rate in the U.S is 3%, while the inflation rate in Japan is 1.3%. The current exchange rate for the Japanese Yen is

  1. The inflation rate in the U.S is 3%, while the inflation rate in Japan is 1.3%. The current exchange rate for the Japanese Yen is 0.009592. After supply and demand for Japanese yen has adjusted in the manner suggested by purchasing power parity, what will be the new exchange rate for the yen in 2 years from now?

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