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question 11 Assume that Japan and the U.S have similar inflation rates. Due to COVID-19, the U.S. inflation rate is expected to increase more relative

question 11

Assume that Japan and the U.S have similar inflation rates. Due to COVID-19, the U.S. inflation rate is expected to increase more relative to Japanese inflation. Other things being equal, how should this affect the (a) U.S. demand for Japanese yen, (b) supply of Japanese yen for sale, and (c) equilibrium value of the Japanese yen? Briefly explain.

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