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The inflation rate in the US is 5% while the inflation rate in Japan is 10%. The current exchange rate for the Japanese yen ()


The inflation rate in the US is 5% while the inflation rate in Japan is 10%. The current exchange rate for the Japanese yen (¥) is $0.0080. After supply and demand for the Japanese yen have adjusted in the manner suggested by purchasing power parity, what will be the new exchange rate for the yen?

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