Suppose the United States and Japan have a flexible exchange rate system. Explain whether each of the

Question:

Suppose the United States and Japan have a flexible system. Explain whether each of the following events will lead to an appreciation or depreciation of the U.S. dollar and Japanese yen.
(a) U.S. real interest rates rise above Japanese real interest rates.
(b) The Japanese inflation rate rises relative to the U.S. inflation rate.
(c) An increase in U.S. income combines with no change in Japanese income.
Exchange Rate
The value of one currency for the purpose of conversion to another. Exchange Rate means on any day, for purposes of determining the Dollar Equivalent of any currency other than Dollars, the rate at which such currency may be exchanged into Dollars...