2. Determining long-term exchange rates Consider two countries, the United States and Japan, that trade with each other. Suppose that the price level increases in the United States, but it remains the same in Japan. The following graph shows the supply and demand for the Japanese yen in the United States before the price change. The vertical axis is the exchange rate of the yen in terms of the dollar, and the horizontal axis is the quantity of yen. Show how the change in the price level affects the equilibrium exchange rate by shifting one or both of the curves on the graph. Note: Select and drag one or both of the curves to the desired position. Curves will snap into position, so if you try to move a curve and it snaps back to its original position, just drag it a little farther. (9 Suppl Demand Supply EXCHANGE RATE (Dollars per yen) -----+ Note: Select and drag one or both of the curves to the desired position. Curves will snap into position, so if you try to move a curve and it snaps back to its original position, just drag it a little farther. 0 Suppl Demand I:I Supply /;\\ QUANTITY (Millions of y. EXCHANGE RATE (Dollars per yen) depreCIates As a result of the price change, the U.S. dollar appreciates v