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What is the expected spot rate at the end of the year assuming PPP? 87.60 85.71 87.35 .0121 Assume that the export price of a

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What is the expected spot rate at the end of the year assuming PPP?

87.60

85.71

87.35

.0121
Assume that the export price of a Toyota Corolla from Osaka, Japan is #2,150,000. The exchange rate is #87.60/S. The forecast rate of inflation in the United States is 2.2% per year and is 0.0% per year in Japan. Use this data to answer the following questions on exchange rate pass through

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