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7. The Bank of Japan purchases Japanese yen in the foreign exchange market. a. In the graphs, show the shift in the supply and/or demand

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7. The Bank of Japan purchases Japanese yen in the foreign exchange market. a. In the graphs, show the shift in the supply and/or demand curves in Japan's Credit Market and in the Exchange Market for the yen. Use inserted arrows to show the shift in the curves and changes to the X and Y-axis variables. Cost of Exchange credit Rate Price/E S S D D Q of real credit/time (RC) E/per of time b. Does the yen appreciate or depreciate? c. What is the effect on Japanese exports and RGDP? d. How will the real interest rate affect C and

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