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Yen Market Dynamics
easy

If capital flows from Japan to the U.S., the value of the Yen will decrease, making Japanese goods cheaper for U.S. consumers and U.S. goods more expensive for Japanese consumers.

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Learning Path
Learning Path

Question & Answer
1
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2
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3
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4
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Choose the Best Answer

A

True

B

False

Understanding the Answer

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Answer

When capital flows from Japan to the United States, it means that investors in Japan are putting their money into U. S. businesses or assets. This increased demand for U. S.

Detailed Explanation

When money moves from Japan to the U.S., people sell Yen to buy dollars. Other options are incorrect because Some might think that capital flow doesn't affect currency value.

Key Concepts

Exchange Rate Dynamics
Capital Flows
International Trade Effects
Topic

Yen Market Dynamics

Difficulty

easy level question

Cognitive Level

understand

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