effects on the exchange rate
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Using demand and supply analysis to assist you, what are the effects on the exchange rate between the British pound and the Japanese yen from:
a. an increase in Japanese interest rates
b. an increase in the price of British goods
c. an increase in British interest rates
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ANSWERS
a. An increase in Japanese interest rates results the Japanese Yen more attractive. This then increases demand for the Japanese Yen, which in turn will result to the ...
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