Spot rate between yen and euros

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Reference no: EM131526528

Suppose you observe that the spot rate between yen and euros on 3/1/2017 was ¥110/€ and on 4/1/2017 the spot rate was €.0086/¥. According to relative PPP, which of the following is true?

Expected inflation rose faster in Japan than in the Eurozone.

Expected inflation rose faster in the Eurozon than in Japan.

Expected inflation in both nations was constant.

Cannot be determined.

Reference no: EM131526528

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