Problem
Part A identify what factor is changing in each of the scenarios. Make sure that your theory is correct before you start any question.
Part B Now carefully draw your foreign exchange markets. Be sure to label all axes and indicate all shifts very carefully.
Part C Finally, prepare your explanations for your shifts (brief two or three line explanations are fine for each shift).
Japan and South Korea are trading partners, and also have capital flows between them. The currency in Japan is the Japanese Yen (¥) and the currency in South Korea is the South Korean Won (?). Assume that the initial equilibrium exchange rate in South Korea is 10 ? per ¥. Now suppose that the return on savings rises in South Korea.
Part D.Using TWO separate graphs of the Japanese foreign exchange market, with each graph showing a different possible shift that could occur in that particular forex market, show how the equilibrium exchange rate might change. Label your graphs fully and explain the reason for your shifts. (6 points) (draw graphs showing this information)
part ENow mirror your explanation using TWO separate graphs of the foreign exchange market, with each graph showing a different possible shift that could occur in that particular forex market, show how the equilibrium exchange rate might change. Label your graphs fully and explain the reason for your shifts. (break it down in these parts)
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.