What is the expected spot rate in one year of the dollar

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Problem 1: Annual inflation rate in the US and Japan are expected to be 8% and 5%, respectively, The current spot rate for the yen is 94.31 yen per dollar. Assuming inflation rates remain constant in the foreseeable future, What is the expected spot rate in one year of the dollar in terms of yen based on relative purchasing power parity?

Reference no: EM132928814

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