Practical application foreigners are buying up hundreds of, Econometrics

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Practical application foreigners are buying up hundreds of

1. What is a foreign exchange rate? Provide a few examples.

2. How is the exchange rate determined in a freely floating rate system?

3. Who demands Japanese yen? Who supplies yen?

4. Practical Application: Foreigners are buying up hundreds of billions of dollars a year in American assets. In what ways should this be a matter of concern to Americans?

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