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| Which one of the following statements supports the conclusion that the U.S. dollar has gained purchasing power against the Japanese yen? A. Inflation has recently been higher in the U.S. than in Japan. B. The dollar is currently trading at a premium in the forward market with respect to the yen. C. The yen’s spot rate with respect to the dollar has just fallen. D. Studies recently published in the financial press have shed doubt on the interest rate parity (IRP) theory. |