Suppose the spot and three-month forward rates for the yen are ¥79.60 and ¥78.96, respectively. ...

Suppose the spot and three-month forward rates for the yen are ¥79.60 and ¥78.96, respectively.

What would you estimate is the difference between the annual inflation rates of the United States and Japan? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

Difference in rates

%

*I tried getting assistance with this question before but the answer was incorrect.

Expert Solution

jeff jeffy answered 2 years ago

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