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Suppose the U.S.price level rises 25 percent at a time when Japan experiences stable prices.As a result,the U.S.demand for Japanese goods will __________,and the Japanese demand for U.S.goods will __________;in turn,this will increase the demand for Japanese yen and decrease the supply of Japanese yen;in turn,the dollar will depreciate and the yen will appreciate.


A) rise;fall
B) fall;rise
C) rise;rise,too
D) fall;fall,too

E) A) and B)
F) C) and D)

Correct Answer

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