Draw the demand and supply curves and provide brief explanations about the exchanger rate and the value of the domestic currency in each case. Note: you just need to state whether the dollar has appreciated or depreciated and whether the exchange rates (R) goes up or down) (after drawing the graphs). Note: be sure to use the currency of the foreign country implied in each question!
10 Real interest rates rose in Japan relative to those in the U.S.
11. Real interest rates rose in the U.S. relative to those in Great Britain.
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