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Assume U.S. goods have fallen out of favor with Japanese consumers. Answer A and B. Explain your answers. A. What would happen to U.S. net

Assume U.S. goods have fallen out of favor with Japanese consumers. Answer A and B. Explain your answers.

A. What would happen to U.S. net exports curve as a function of the real exchange rate?

B. What happens to the equilibrium nominal exchange rate (the Yen price of a dollar)? Answer by showing and explaining the effect on the market for foreign exchange. What happens to equilibrium net exports?

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