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Unformatted text preview: o 100=$1, which means the dollar (apprec/deprec), which (incr/decr) our imports from Japan. 17. Depreciation of the euro will (increase/decrease) European exports & (increase/decrease) their imports.
18. If Mexico decides to increase their investments in the U.S., the peso will (appreciate/depreciate) which would (increase/decrease) [Mexico’s imports] U.S. exports to Mexico. 19. If the exchange rate changes so that more Japanese yen are required to buy a dollar then the yen will (appreciate/depreciate) and Americans will purchase (more/less) Japanese goods. 20. If Americans increase their investments in Europe, then the supply of dollars in European banks will (incr/decr) & the dollar will (apprec/deprec).
21. If Europeans quadrupled their investments in the U.S. stock market, the supply of euros in U.S. banks would (incr/decr) & the dollar would (appr/depr). 22. Under a system of freely floating exchange rates, an increase in the inter national value of a nation’s currency will cause its (exports/imports) to increase.
23. If the exchange...
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