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4. Everything else held constant, if the inflation rate increase in the US is 2%s while the Japanese inflation rate increase is 3%, then: a

4. Everything else held constant, if the inflation rate increase in the US is 2%s while the Japanese inflation rate increase is 3%, then:

a Merchandise in the US would be more expensive for Japanese consumers.

b Dollar would depreciate against Japanese Yen.

c Demand for Japanese Yen in the FX market would increase

d. Supply of Japanese Yen in the FX market would increase

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