Assume You Can Currently Exchange $1 for ¥100

question 20

Multiple Choice

Assume you can currently exchange $1 for ¥100.Also assume the inflation rate will be 2.5 percent annually in the U.S.and 2 percent in Japan.Given these assumptions,how many yen should you expect in exchange for $1 next year?

• A)More than 100
• B)Either 100 or more than 100
• C)Exactly 100
• D)Either 100 or less than 100
• E)Less than 100

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