Consider the foreign exchange market for japanese yen

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  1. Consider the foreign exchange market for Japanese Yen and Dollars. Assume a market where the U.S. dollars are on the x axis as shown in the background material. Indicate whether the dollar would APPRECIATE or DEPRECIATE if the following events occur (be sure to explain your answer such as including reference to the demand or supply curve):
    1. The interest rate in Japan is lowered.
    2. Prices are lower in U.S.
    3. Higher US interest rates
  2. Because wage rates are so low in Africa, why don't Microsoft, Cisco and other major corporations close down their American operations and move to Africa?

 

 

Reference no: EM13819766

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