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Suppose the US and Japan are the only two countries in the world. What will happen to value of the U.S. dollar if the following
Suppose the US and Japan are the only two countries in the world. What will happen to value of the U.S. dollar if the following events occur, other things equal?
a. The U.S. imposes some import tariffs on Japanese goods.
b. Interest rates in the U.S. rise above interest rates in Japan.
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