Assume the spot exchange rate is 106.90 Japanese yen per U.S. dollar. If the inflation...
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Accounting
Assume the spot exchange rate is 106.90 Japanese yen per U.S. dollar. If the inflation rate in the U.S. is expected to be 2% and the inflation rate in Japan is 1% for the next two years, then the:
exchange rate will increase. | ||
exchange rate will double. | ||
dollar will appreciate relative to the yen. | ||
dollar will become more valuable. | ||
Yen will strengthen against the dollar. |
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