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Category: Economics
For years, the U.S. government has been trying to get Japan and the European Union to expand their economies faster. Explain how more rapid growth in Japan would affect the U.S. economy.
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Category: Economics
If inflation is lower in Germany than in Italy, and the exchange rate between the two countries is fixed (as it is, because of the monetary union), what is likely to happen to the balance of trade between the two countries?
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Category: Economics
From the summer of 2015 to the summer of 2016, market forces raised the international value of the Japanese yen sharply. Why do you think the government of Japan was unhappy about this currency appreciation? If they wanted to stop the yen's appreciation, what actions might the Bank of Japan (Japan's central bank) have taken?
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Category: Economics
Use an aggregate supply-demand diagram to analyze the effects of a currency appreciation.
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Category: Economics
Explain why the members of the Bretton Woods conference in 1944 wanted to establish a system of fixed exchange rates. What flaw(s) led to the ultimate breakdown of the system in 1971?

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