Use the graph to answer the following questions. a. Briefly explain whether the dollar appreciated or depreciated
Question:
Use the graph to answer the following questions.
a. Briefly explain whether the dollar appreciated or depreciated against the yen.
b. Which of the following events could have caused the shift in demand shown in the graph?
i. Interest rates in the United States declined.
ii. Income rose in Japan.
iii. Speculators began to believe the value of the dollar would be higher in the future.
Transcribed Image Text:
Exchange rate (V/S) ¥130 120 D2 D1 Quantity of dollars traded
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