GIVEN A CURRENT SPOT RATE OF ¥124.50/$, EXPECTED INFLATION RATES...

157. Given a current spot rate of ¥124.50/$, expected inflation rates of 2% in Japan and 4% per annum in the U.S., use the formula for relative purchasing power parity estimate the one-year spot rate of yen per dollar. a. ¥122.11/$ b. ¥124.50/$ c. There is not enough information to answer this question d. ¥126.94/$