Will the dollar depreciate or appreciate relative to the yen

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Reference no: EM131951136

Question: If a bundle of goods in Japan costs 4,000,000 while the same goods and services cost $40,000 in the United States, what is the current exchange rate of U.S. dollars for yen? If, over the next year, inflation is 6 percent in Japan and 10 percent in the United States, what will the goods cost next year? Will the dollar depreciate or appreciate relative to the yen over this time period?

Reference no: EM131951136

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