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Question
Which of the following will shift the demand curve for the Japanese yen to the right in a trade flow model?
a. There is a large increase in Japanese demand for U.S. exports as U.S. culture become more popular in Japan.
b. U.S. consumers no longer want to buy Japanese products after the Toyota lawsuit, leading Americans to question the quality of Japanese products.
c. Political uncertainties in Asia lead U.S. investors to shift their financial investment out of Japan, back to the United States.
d. U.S. demand for products imported from Japan increases significantly as Japanese culture becomes more popular in the U.S.
Answer
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