effects on the exchange rate between the British pound and the Japanese yen
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Using demand and supply analysis, answer the following questions. 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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The effects on the exchange rate between the British pound and the Japanese yen are emphasized.
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The exchange rate between the British Pound and Japanese Yen is dependent on a number of factors, some of the most important of which are the ones you have mentioned in the questions here: changes in interest rates in the two economies and changes in price of goods. Suppose you get X Japanese Yen for each British Pound. Then if the economic change increases X I say that the exchange rate has risen, and if X falls then I say the exchange rate has fallen.
a. When Japanese interest rates go up it is beneficial to hold ...
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