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Interest rates in the united states fall relative

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Suppose the US and Japan are the only two countries in the world, what will happen to the value of the U.S. dollar (appreciate or depreciate), and U.S. exports if the following events occur (other things equal)?

a. The United States imposes import tariffs on some Japanese goods.

b. Interest rates in the United States fall relative to Japanese interest rate on all kinds of financial savings instruments.

Reference no: EM132405654

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