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    Determination Of Exchange Rates

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    Suppose prices start rising in the United States relative to prices in Japan. What would we expect to see happen to the dollar:yen exchange rate? Explain.

    If a foreigner purchases a U.S. government security, what happens to the supply of, and demand for, dollars?

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    https://brainmass.com/business/foreign-exchange-rates/determination-exchange-rates-178659

    Solution Preview

    Suppose prices start rising in the United States relative to prices in Japan. What would we expect to see happen to the dollar:yen exchange rate? Explain.

    As U.S. prices start ...

    Solution Summary

    The expert examines the determination of exchange rates. This posting gives a detailed solution to the student's question.

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