International trade – Answer the question fasttt
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Explain in words the effect of each of the following events in the short run on the demand for and supply of the U.S. dollar. In each case, assume the two countries under consideration are important trading partners.
There is a decrease in the real interest rates in the United States relative to Japan.
Investment returns in the United States increase relative to expected returns in Japan.
Inflation in Japan increase relative to the inflation rate in the United States.
The Japanese expect the value of the U.S. dollar to increase.
The Federal Reserve decreased interest rates fearing the deflationary pressures of a recession
U.S. economy.
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