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“FOREX Graphing Practice”

“FOREX Graphing Practice”. 1. Assume interest rates in the United States are currently lower than interest rates in Japan. a. Show and Explain how this situation affects: i . international value of the dollar. S of $ shifts right b/c….

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“FOREX Graphing Practice”

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  1. “FOREX Graphing Practice”

  2. 1. Assume interest rates in the United States are currently lower than interest rates in Japan. a. Show and Explain how this situation affects: i. international value of the dollar S of $ shifts right b/c….. Americans will S more $ in order to exchange for Yen in order to invest (save) in Japan P of Dollar in Euros Yen Yen Pe Results? …. Value of $ depreciated

  3. a. Show and Explain how this situation affects: ii. international value of the yen D of Yen shifts right b/c….. Americans will D more Yen in order to invest (save) in Japan P of Yen in Dollars Dollars per Yen Pe Results? …. Value of Yen appreciated Yen

  4. b. What happens to the US Nx • As the value of the $ depreciates, US Nx begin to rise c. What happens to the Japanese Nx • As the value of the Yen appreciates, Japan’s Nx begin to fall

  5. 1. Assume interest rates in South Korea are currently higher than interest rates in Australiaa. Show and Explain how this situation affects: i. international value of the South Korean Won D of Won shifts right b/c….. Aust. will D more Won in order to invest (save) in S.Korea P of Dollar in Euros P of Won in Dollars Yen Dollar Per Won Pe Results? …. Value of Won appreciated Won

  6. ii. international value of the Aust. dollar S of $ shifts right b/c….. Australians will S more dollars in order to exchange for Won in order to invest (save) in S. Korea P of Dollar in Euros Yen Won won Pe Results? …. Value of $ depreciated

  7. b. What happens to the South Korean Nx • As the value of the Won appreciates, S.K. Nx begin to fall c. What happens to the Australian Nx • As the value of the dollar depreciates, Aust. Nx begin to rise

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