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Exchange rate between the us and japan

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Reference no: EM131116691

Suppose the exchange rate between the U.S. and Japan is initially 175 yen/dollar. If the exchange rate decreases to 160 yen/dollar, which of the following would occur?

  1. The U.S. would ship more goods to Japan

  2. The U.S. trade balance would improve

  3. U.S. real GDP would decrease

  4. Both a. And b.

Reference no: EM131116691

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