Question: Please help me solve this question. (30pt) The US enters a deep recession, and Real GDP falls substantially. Even so, forecasters ex- pect the episode

Please help me solve this question.

(30pt) The US enters a deep recession, and Real GDP falls substantially. Even so, forecasters ex- pect the episode to be short-lived. Assume throughout that the Fed does not respond to these developments. (a) (20th What are the consequences of this recession for the interest rate in the US and for the Dollars-per-Yen ($ IJ nominal exchange rate? (b) (10th What could the Bank of Japan do to prevent the US recession from changing the Dollars- per-Yen exchange rate? How would their policies impact the interest rate in Japan

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