Problem
If core price inflation has grown at a compound growth rate of 2 percent per annum in the United States and 0.04 percent in Japan for the past eight years, what exchange rate represents PPP today if the two currencies eight years ago in 2002 were in parity and exchanged at the rate of ¥120/$?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.