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Purchasing Power Parity Forecasts. Use the table containing economic, financial and business indicators to answer the following questions. Assuming purchasing power parity, and assuming that the forecasted change in consumer prices is a good proxy of predicted inflation, forecast the following exchange rates: a. Japanese yen/U.S. dollar in one year b. Japanese yen/Australian dollar in one year c. Australian dollar/U.S. dollar in one year a. Assuming purchasing power parity, and assuming that the forecasted change in consumer prices is a good proxy of predicted inflation, forecast the following exchange rates: a. Japanese yen/U.S. dollar in one year The forecast of the spot rate for Japanese yen/U.S. dollar in one year is 's. (Round to two decimal places.) b. Japanese yen/Australian dollar in one year The forecast of the cross rate for Japanese yen/Australian dollar in one year is AS. (Round to two decimal places.) c. Australian dollar/U.S. dollar in one year The forecast of the spot rate for Australian dollar/U.S. dollar in one year is A$$. (Round to four decimal places.) The table below contains economic, financial, and business indicators from 2015: Unemployment Rate Forecasting the Pan-Pacific Pyramid: Australia, Japan, and the United States Industrial Gross Domestic Product Production Forecast Forecast Latest Qtr Qtr 2015e 2016e Recent Qtr 4.8 % 3.7 % 4.1 % 3.9 % 4.7% 1.7 % -1.7 % 2.5 % 2.1 % 4.5 % 1.9 % 4.1 % 2.5 % 2.4 % 1.9 % Latest 4.2 % Country Australia Japan United States 3.9 % 4.9% Country Australia Japan United States Consumer Prices Forecast Year Ago Latest 2015e 4.5 % 2.6 % 2.6% 0.8 % -0.5% 0.0 % 2.2 % 2.5 % 3.3 % Interest Rates 3-month 1-yr Govt Latest Latest 6.82% 6.22 % 0.68 % 1.66 % 4.92 % 4.59 % Current Units (per US$) Trade Balance Last 12 mos (billion $) -12.7 98.7 Current Account Last 12 mos Forecast 15 (billion $) (% of GDP) -46.1 -5.8 % 197.4 4.6 % Country Australia Japan Oct 17th Year Ago 1.31 1.11 115.00 121.00 Purchasing Power Parity Forecasts. Use the table containing economic, financial and business indicators to answer the following questions. Assuming purchasing power parity, and assuming that the forecasted change in consumer prices is a good proxy of predicted inflation, forecast the following exchange rates: a. Japanese yen/U.S. dollar in one year b. Japanese yen/Australian dollar in one year c. Australian dollar/U.S. dollar in one year a. Assuming purchasing power parity, and assuming that the forecasted change in consumer prices is a good proxy of predicted inflation, forecast the following exchange rates: a. Japanese yen/U.S. dollar in one year The forecast of the spot rate for Japanese yen/U.S. dollar in one year is 's. (Round to two decimal places.) b. Japanese yen/Australian dollar in one year The forecast of the cross rate for Japanese yen/Australian dollar in one year is AS. (Round to two decimal places.) c. Australian dollar/U.S. dollar in one year The forecast of the spot rate for Australian dollar/U.S. dollar in one year is A$$. (Round to four decimal places.) The table below contains economic, financial, and business indicators from 2015: Unemployment Rate Forecasting the Pan-Pacific Pyramid: Australia, Japan, and the United States Industrial Gross Domestic Product Production Forecast Forecast Latest Qtr Qtr 2015e 2016e Recent Qtr 4.8 % 3.7 % 4.1 % 3.9 % 4.7% 1.7 % -1.7 % 2.5 % 2.1 % 4.5 % 1.9 % 4.1 % 2.5 % 2.4 % 1.9 % Latest 4.2 % Country Australia Japan United States 3.9 % 4.9% Country Australia Japan United States Consumer Prices Forecast Year Ago Latest 2015e 4.5 % 2.6 % 2.6% 0.8 % -0.5% 0.0 % 2.2 % 2.5 % 3.3 % Interest Rates 3-month 1-yr Govt Latest Latest 6.82% 6.22 % 0.68 % 1.66 % 4.92 % 4.59 % Current Units (per US$) Trade Balance Last 12 mos (billion $) -12.7 98.7 Current Account Last 12 mos Forecast 15 (billion $) (% of GDP) -46.1 -5.8 % 197.4 4.6 % Country Australia Japan Oct 17th Year Ago 1.31 1.11 115.00 121.00

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