What exchange rate would you expect

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Question -

a) A candidate running for office says, "America will no longer be able to export because we are going to lose our competitive edge in every good!" Is this possible? Discuss briefly.

b) If 7-year rates in the US are 3.4%, and 7-year rates in Japan are 1.2%, and the current exchange rate is 82.5 Yen/$, what exchange rate would you expect in 7-years?

Reference no: EM132179871

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