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pogonyaev
3 years ago
15

If the real exchange rate depreciates from 1 Japanese good per U.S. good to 0.5 Japanese good per U.S. good, then U.S. exports _

_____ and U.S. imports ______.
Social Studies
1 answer:
denis23 [38]3 years ago
8 0

Answer:

increase ; decrease

Explanation:

the blank will be filled with increase ; decrease respectively.

when the exchange rate changes to 0.5 Japanese good per U.S. good from 1 Japanese good per U.S. good.

then it means that there is an increase in  U.S. exports and decrease in U.S. import.

This makes the Dollar stronger and the Purchasing power of US dollar increase.

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Question text
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