Question: 1. We have a flexible FX monetary system, so what determines the FX for a currency and causes the US to want to buy Japanese

1. We have a flexible FX monetary system, so what determines the FX for a currency and causes the US to want to buy Japanese Yen? Please use graphical analysis and show how the dollar price of the yen may rise.

2. What are the three markets that international finance is the focus of and why?

3. Please describe the relationship between output and spending, savings and investment, the trade balance, and the flow of capital investment from one country to another.

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