Module 10 AssignmentASSIGMENT # 101. If the Fed started printing large quantities of U.S. dollars. What will happen to thenumber of Japanese yen a dollar could buy? Why?Printing of large quantities of the U.S. dollar will make a dollar to purchase fewer Japaneseyen since the U.S. price level would rise and consequently make the U.S. dollar to lose valuein terms of services and goods it can purchase and also in relation to the amount of othercurrencies it can buy.2.Assuming all other things equal, what would happen to the U.S. dollar real exchange rateunder each of the following circumstances?a. The U.S. nominal exchange rate depreciates.If the nominal exchange rate of the U.S. depreciates and prices are constant in theUnited States and abroad, there will be a decline real exchange rate.b. U.S. domestic prices increase.If the domestic prices in the United States rise fas ...
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