How would the event affect the market for the yen


Problem

Suppose that signs of an improvement in the Japanese economy lead international investors to resume lending to the Japanese government and businesses. Policymakers, however, are worried about how this will influence the yen. How would this event affect the market for the yen? How should the central bank, the Bank of Japan, respond to this event if it wants to keep the value of the yen unchanged?

The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.

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Macroeconomics: How would the event affect the market for the yen
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