If purchasing power parity holds what is the current, Financial Management

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If purchasing power parity holds what is the current

A bundle of goods in Japan costs ¥3,420,000 while the same goods and services cost $28,600 in the United States.

a) If purchasing power parity holds, what is the current exchange rate of U.S. dollars for yen?

b) If, over the next year, inflation is 4 percent in Japan and 8 percent in the United States, what will the goods cost next year?

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