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3. (2) Suppose that Japan intentionally weakened its currency to boost exports. Draw a money-interest rate and exchange rate diagram to show how the Bank

3. (2) Suppose that Japan intentionally weakened its currency to boost exports. Draw a money-interest rate and exchange rate diagram to show how the Bank of Japan would have changed its money supply to change its exchange rate. Is this expansionary or contractionary monetary policy? The exchange rate on your y-axis should be y to $1.

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