Explain the purpose of the following figure 14-2 from the text in the context of the interest rates on the dollar and the Japanese Yen between 1980 and 2010
What will be an ideal response?
Since the dollar and the Yen interest rates are not measured in comparable terms, they can move quite differently over time. Except for a period from 1990 to 1993 when the Yen interest rate was higher than the dollar, dollar interest rates have been higher than the Yen, indicating depreciation of the dollar against the Yen.
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A great deal of damage is done to the environment in the urban U.S. because
A) a system based on private property cannot provide for a common environment. B) few people understand the economics of pollution. C) many and perhaps most people assign little or no value to a pleasant environment. D) the environment is treated as everyone's property and therefore as no one's property. E) the United States has no central planning.
In the 1990s the United States eliminated its budget deficit and expanded the money supply. This should have led to
a. lower real interest rates and a depreciation of the dollar. b. lower real interest rates and an appreciation of the dollar. c. higher real interest rates and a depreciation of the dollar. d. higher real interest rates and an appreciation of the dollar.