Thursday, September 25, 2014

Currency 1-7 Problems

1. American tourists increase visits to Japan.
2. The US government significantly decreases personal income tax.
3. Inflation in the Japan rises significantly faster than in the US.
4. Japan has a large budget deficit that increases Japanese interest rates.
5. Japan places high tariffs on all US imports.
6. The US suffers a larger recession.
7. The US Federal Reserve sells bonds at high interest rates.

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