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    International Economics Study Set 12
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    Exam 12: Exchange Rate Determination
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    In 1985 and 1986, U
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In 1985 and 1986, U

Question 98

Question 98

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In 1985 and 1986, U.S.interest rates fell relative to interest rates in Japan.Under floating exchange rates, this would lead to the dollar's exchange value depreciating against the yen.

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