10. Over the past decade, some of Japanese saving has been used to finance American investment. That...

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10. Over the past decade, some of Japanese saving has been used to finance American investment. That is, American net foreign investment in Japan has been negative.

a. If the Japanese decided they no longer wanted to buy U.S. assets, what would happen in the U.S.

market for loanable funds? In particular, what would happen to U.S. interest rates, U.S. saving, and U.S. investment?

b. What would happen in the market for foreigncurrency exchange? In particular, what would happen to the value of the dollar and the U.S.

trade balance?

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Principles Of Macroeconomics

ISBN: 9780324171891

3rd Edition

Authors: N. Gregory Mankiw

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Question Posted: Sep 27, 2024 07:01 AM

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10. Over the past decade, some of Japanese saving has been used to finance American investment. That...

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Principles Of Macroeconomics

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