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If investment returns in the United States increase relative to expected returns in Japan, investment in the United States becomes relatively more/less attractive. As a
If investment returns in the United States increase relative to expected returns in Japan, investment in the United States becomes relatively more/less attractive. As a result, both holders of yen and holders of dollars will prefer dollar / yen denominated assets. This will increase / decrease the supply of U.S. dollars and increase Zdecrease the demand for U.S. dollars. The dollar appreciates / depreciates. O more; dollar, decrease; increase; appreciates O less; dollar, decrease; increase; appreciates more; yen; decrease; increase; appreciates O more; dollar, decrease; increase; depreciates
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