Retrieve the nominal exchange rates between Japan and the United States from the Federal Reserve Bank of St. Louis FRED data site. It is series AEXJPUS. This exchange rate is written as yen per dollar.

a. In the terminology of the chapter, when the exchange rate is written as yen per dollar, which country is being treated as the domestic country?

b. Plot the number of yen per dollar since 1971. During which time period(s) did the yen appreciate? During which period(s) did the yen depreciate?

c. Given the long-running Japanese slump, one way of increasing demand would be to make Japanese goods more attractive. Does this require an appreciation or a depreciation of the yen?

d. What has happened to the yen during the past few years? Has it appreciated or depreciated? Is this good or bad for Japan?