Question
The table below contains economic, financial, and business indicators from 2015: Forecasting the Pan-Pacific Pyramid: Australia, Japan, and the United States Industrial Unemployment Gross Domestic
The table below contains economic, financial, and business indicators from 2015:
Forecasting the Pan-Pacific Pyramid: Australia, Japan, and the United States | |||||||||||||||
Industrial | Unemployment | ||||||||||||||
Gross Domestic Product | Production | Rate | |||||||||||||
Forecast | Forecast | ||||||||||||||
Country | Latest Qtr | Qtr | 2015e | 2016e | Recent Qtr | Latest | |||||||||
Australia | 4.3 | % | 3.8 | % | 4.1 | % | 3.5 | % | 4.6 | % | 4.2 | % | |||
Japan | 1.6 | % | -1.2 | % | 2.0 | % | 1.9 | % | 4.3 | % | 3.8 | % | |||
United States | 1.9 | % | 3.8 | % | 2.0 | % | 2.2 | % | 1.9 | % | 4.7 | % | |||
Consumer Prices | Interest Rates | ||||||||||||||
Forecast | 3-month | 1-yr Govt | |||||||||||||
Country | Year Ago | Latest | 2015e | Latest | Latest | ||||||||||
Australia | 4.0 | % | 2.1 | % | 2.4 | % | 6.90 | % | 6.23 | % | |||||
Japan | 0.9 | % | -0.2 | % | 0.0 | % | 0.73 | % | 1.65 | % | |||||
United States | 2.1 | % | 2.8 | % | 2.8 | % | 4.72 | % | 4.54 | % | |||||
Trade |
| ||||||||||||||
Balance | Current Account | Current Units (per US$) | |||||||||||||
Last 12 mos | Last 12 mos | Forecast 15 | |||||||||||||
Country | (billion $) | (billion $) | (% of GDP) | Oct 17th | Year Ago | ||||||||||
Australia | -13.0 | -47.0 | -5.7 | % | 1.12 | 1.33 | |||||||||
Japan | 98.1 | 197.5 | 4.6 | % | 117.00 | 119.00 | |||||||||
United States | -810.7 | -793.2 | -5.6 | % | 1.00 | 1.00 | |||||||||
Note: Unless otherwise noted, percentages are percentage changes over one year. Rec Qtr = recent quarter. Values for 2015e are estimates or forecasts. |
Use the table above to answer the following question.
Assuming International Fischer applies to the coming year, forecast the following future spot exchange rates using the government bond rates for the respective countrycurrencies:
c. Australian dollar/U.S. dollar in one year
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