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Both Japan and the United States have their own currencies, yen and dollars, respectively. Each country requires that their citizens pay taxes, using only their
Both Japan and the United States have their own currencies, yen and dollars, respectively. Each country requires that their citizens pay taxes, using only their home-country currency. How would this payment restriction assure that the exchange rate between the yen and the dollar is determinate? (Hint: how does the tax-payment policy act like currency control?)
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