Ahamburger costs $8 in the united states and ¥960 in japan. the nominal exchange rate is ¥110 per dollar. the inflation rates in the united states and in japan are 2% and 4%, respectively. the purchasing power parity is per dollar.

122.4

Explanation:

The formula for calculating purchasing power parity is given below:

Exchange rate for the Purchasing power parity can be calculated using the below formula:

960/8=120¥ per $

ST = S0 × (1 + if/ 1 + id)

ST = Estimated spot rate at end of period

S0 = Current spot rate

if = period inflation rate in foreign currency

id = period inflation rate in domestic currency

ST=120 x (1+4%/1+2%)

   =120 x (1.04/1.02)

   =120 x 1.02

   =122.4 ¥ per dollar

1. c

2. b

3. a

4. c

5. a

6. b

7. c

8. c

9.b

10. d

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answer; swot analysis;