Assignment:
From base price levels of 100 in 2000, Japanese and U.S. price levels in 2003 stood at 102 and 106, respectively.
a. If the 2000 $:¥ exchange rate was $0.007692, what should the exchange rate be in 2003?
b. In fact, the exchange rate in 2003 was ¥ 1 = $0.008696. What might account for the discrepancy? (Price levels were measured using the consumer price index.)
Your answer must be, typed, double-spaced, Times New Roman font (size 12), one-inch margins on all sides, APA format and also include references.