Under the theory of purchasing power parity,an increase in the Australian price level of 5%,relative to the Japanese price level,should result in a:

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Under the theory of purchasing power parity, if the Australian price level increases by 5% relative to the Japanese price level, it would make Australian goods more expensive compared to Japanese goods. This would decrease the demand for Australian dollars to buy those more expensive goods and increase the demand for Japanese yen to buy the relatively cheaper Japanese goods, leading to a 5% rise in the value of the Japanese yen relative to the Australian dollar.

Under the Theory of Purchasing Power Parity,an Increase in the Australian