1. Use the following information to answer the questions below. Assume that the capital account is 0.

Exports of goods and services	500
Primary income received Secondary income received	200 300
Imports of goods and services	700
Primary income paid abroad	300
Secondary income paid	100
Net acquisition of financial assets	300
Net incurrence of liabilities	400
Net change in financial derivatives	600

4.- Suppose the dollar-yen exchange rate is 0.01 dollar per yen. Since the base year, inflation has been 2 percent in Japan and 10 percent in the United States. What is the real exchange rate? In real terms, has the dollar appreciated or depreciated against the yen?