ECONOMICS
TRADE EXCHANGE AND INTERDEPENDENCE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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I only
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II only
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III only
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i and II only
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Detailed explanation-1: -The US dollar is appreciated. The correct answer is d .
Detailed explanation-2: -Answer and Explanation: The correct answer is C. fall, rise. If the U.S. dollar appreciates against the Japanese yen, the exports to Japan will fall as the Japanese will find the goods and services imported from the U.S. more expensive than before.
Detailed explanation-3: -If the dollar depreciates against the yen, U.S. commodities become relatively cheaper compared to Japanese products, which induces American consumers to consume less Japanese goods and more domestically produced American goods.
Detailed explanation-4: -1 USD = 136.203 JPY Mar 07, 2023 12:40 UTC Check the currency rates against all the world currencies here. The currency converter below is easy to use and the currency rates are updated frequently.
Detailed explanation-5: -The core policy issue underlying this year’s depreciation comes from the gap between interest rates in the United States and Japan. Lower interest rates encourage borrowing, which stimulates the economy, whereas higher interest rates restrain borrowing but help curb inflation. BOJ Gov.