If the domestic prices for traded goods rose 50 percent, Econometrics

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If the domestic prices for traded goods rose 50 percent

1. Would increased cost inflation in the United States relative to its major trading partners likely increase or decrease the value of the U.S. dollar? Why?

2. If the domestic prices for traded goods rose 50 percent over 10 years in Japan and 100 percent over those same 10 years in the United States, what would happen to the yen/dollar exchange rate? Why?

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Econometrics: If the domestic prices for traded goods rose 50 percent

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