Abenomics: In Japan, when Mr. S became the prime minister, the country was going through a negative inflation. He followed the ease of monetary policy . The bank of Japan ensured that it will do everything to bring back the inflation to 2%. All the economic policies taken by Mr. Sare referred as Abenomics. Appreciation of Currency: It is referred as the rise in the value of a currency in comparison to other currencies. Consider a situation in which the value of one dollar is equal to INR 50. When it becomes equal to INR 60, it means the dollar has appreciated in comparison to INR. Depreciation of Currency: It is referred as the reduction in the value of a currency in comparison to other currencies. Consider a situation in which value of one dollar is equal to INR 50. When it becomes equal to INR 40, it means the dollar has depreciated in comparison to INR. To explain: Reason for Abenomics resulting in a weaker yen.

Question

Want to see more full solutions like this?

Answer 1

Question

Chapter 19, Problem 1QFT

To determine

Concept Introduction:

Abenomics:

In Japan, when Mr. S became the prime minister, the country was going through a negative inflation. He followed the ease of monetary policy.

The bank of Japan ensured that it will do everything to bring back the inflation to 2%. All the economic policies taken by Mr. Sare referred as Abenomics.

Appreciation of Currency:

It is referred as the rise in the value of a currency in comparison to other currencies.

Consider a situation in which the value of one dollar is equal to INR 50. When it becomes equal to INR 60, it means the dollar has appreciated in comparison to INR.

Depreciation of Currency:

It is referred as the reduction in the value of a currency in comparison to other currencies. Consider a situation in which value of one dollar is equal to INR 50. When it becomes equal to INR 40, it means the dollar has depreciated in comparison to INR.

To explain: Reason for Abenomics resulting in a weaker yen.

Expert Solution & Answer

Explanation of Solution

Ease of monetary policy in Abenomics weakens the yen.

Due to quantitative easing policy followed by Mr. S, the money supply increased in the market which led to a lower interest rate.

Low interest rate led to a weakening of the financial account. It means there is a capital outflow. The demand for yen in the exchange rate market decreased, as a result,the price of yen decreased which is known as a depreciation of currency.

Depreciation made theexport relatively cheaper and the import relatively more expensive.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Students have asked these similar questions

A monopolist had the following fixed costs and marginal revenue and costs for each unit of production: 0 units where fixed costs are 10 1 unit where MR = 60 & MC = 20 & FC = 10 2 units where MR = 50 & MC = 30 & FC = 10 3 units where MR = 45 & MC = 38 & FC = 10 4 units where MR = 40 & MC = 40 & FC = 10 How many units should the firm produce and why?

Respond to this post. Hello Professor, A rise in consumption in the economy would cause an increase in aggregate demand. Therefore, when consumers spend money on everyday goods and services, it not only helps to stimulate economic growth, but it could also present potential issues like unsustainable debt levels or inflation. I believe that it would be beneficial to consider such factors and adopt a purchasing strategy to help navigate the challenges posed by inflation or unsustainable debt levels. First, do you think our business will be affected because inflation is rising? How? Yes, I do believe that the business will be affected because of inflationary pressures. Inflation rising will affect the cost of goods, services, and labor, which could lead to higher operating expenses. The potential reduction of profit margin because of inflation could lead to a smaller percentage of revenue being retained as profit. Therefore, inflation rising will force us to raise prices for…

Not use ai please

Answer 2

Question

Chapter 19, Problem 1QFT

To determine

Concept Introduction:

Abenomics:

In Japan, when Mr. S became the prime minister, the country was going through a negative inflation. He followed the ease of monetary policy.

The bank of Japan ensured that it will do everything to bring back the inflation to 2%. All the economic policies taken by Mr. Sare referred as Abenomics.

Appreciation of Currency:

It is referred as the rise in the value of a currency in comparison to other currencies.

Consider a situation in which the value of one dollar is equal to INR 50. When it becomes equal to INR 60, it means the dollar has appreciated in comparison to INR.

Depreciation of Currency:

It is referred as the reduction in the value of a currency in comparison to other currencies. Consider a situation in which value of one dollar is equal to INR 50. When it becomes equal to INR 40, it means the dollar has depreciated in comparison to INR.

To explain: Reason for Abenomics resulting in a weaker yen.

Expert Solution & Answer

Explanation of Solution

Ease of monetary policy in Abenomics weakens the yen.

Due to quantitative easing policy followed by Mr. S, the money supply increased in the market which led to a lower interest rate.

Low interest rate led to a weakening of the financial account. It means there is a capital outflow. The demand for yen in the exchange rate market decreased, as a result,the price of yen decreased which is known as a depreciation of currency.

Depreciation made theexport relatively cheaper and the import relatively more expensive.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 3

Question

Chapter 19, Problem 1QFT

To determine

Concept Introduction:

Abenomics:

In Japan, when Mr. S became the prime minister, the country was going through a negative inflation. He followed the ease of monetary policy.

The bank of Japan ensured that it will do everything to bring back the inflation to 2%. All the economic policies taken by Mr. Sare referred as Abenomics.

Appreciation of Currency:

It is referred as the rise in the value of a currency in comparison to other currencies.

Consider a situation in which the value of one dollar is equal to INR 50. When it becomes equal to INR 60, it means the dollar has appreciated in comparison to INR.

Depreciation of Currency:

It is referred as the reduction in the value of a currency in comparison to other currencies. Consider a situation in which value of one dollar is equal to INR 50. When it becomes equal to INR 40, it means the dollar has depreciated in comparison to INR.

To explain: Reason for Abenomics resulting in a weaker yen.

Expert Solution & Answer

Explanation of Solution

Ease of monetary policy in Abenomics weakens the yen.

Due to quantitative easing policy followed by Mr. S, the money supply increased in the market which led to a lower interest rate.

Low interest rate led to a weakening of the financial account. It means there is a capital outflow. The demand for yen in the exchange rate market decreased, as a result,the price of yen decreased which is known as a depreciation of currency.

Depreciation made theexport relatively cheaper and the import relatively more expensive.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Question

Chapter 19, Problem 1QFT

To determine

Concept Introduction:

Abenomics:

In Japan, when Mr. S became the prime minister, the country was going through a negative inflation. He followed the ease of monetary policy.

The bank of Japan ensured that it will do everything to bring back the inflation to 2%. All the economic policies taken by Mr. Sare referred as Abenomics.

Appreciation of Currency:

It is referred as the rise in the value of a currency in comparison to other currencies.

Consider a situation in which the value of one dollar is equal to INR 50. When it becomes equal to INR 60, it means the dollar has appreciated in comparison to INR.

Depreciation of Currency:

It is referred as the reduction in the value of a currency in comparison to other currencies. Consider a situation in which value of one dollar is equal to INR 50. When it becomes equal to INR 40, it means the dollar has depreciated in comparison to INR.

To explain: Reason for Abenomics resulting in a weaker yen.

Expert Solution & Answer

Explanation of Solution

Ease of monetary policy in Abenomics weakens the yen.

Due to quantitative easing policy followed by Mr. S, the money supply increased in the market which led to a lower interest rate.

Low interest rate led to a weakening of the financial account. It means there is a capital outflow. The demand for yen in the exchange rate market decreased, as a result,the price of yen decreased which is known as a depreciation of currency.

Depreciation made theexport relatively cheaper and the import relatively more expensive.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 19, Problem 1QFT

To determine

Concept Introduction:

Abenomics:

In Japan, when Mr. S became the prime minister, the country was going through a negative inflation. He followed the ease of monetary policy.

The bank of Japan ensured that it will do everything to bring back the inflation to 2%. All the economic policies taken by Mr. Sare referred as Abenomics.

Appreciation of Currency:

It is referred as the rise in the value of a currency in comparison to other currencies.

Consider a situation in which the value of one dollar is equal to INR 50. When it becomes equal to INR 60, it means the dollar has appreciated in comparison to INR.

Depreciation of Currency:

It is referred as the reduction in the value of a currency in comparison to other currencies. Consider a situation in which value of one dollar is equal to INR 50. When it becomes equal to INR 40, it means the dollar has depreciated in comparison to INR.

To explain: Reason for Abenomics resulting in a weaker yen.

Expert Solution & Answer

Explanation of Solution

Ease of monetary policy in Abenomics weakens the yen.

Due to quantitative easing policy followed by Mr. S, the money supply increased in the market which led to a lower interest rate.

Low interest rate led to a weakening of the financial account. It means there is a capital outflow. The demand for yen in the exchange rate market decreased, as a result,the price of yen decreased which is known as a depreciation of currency.

Depreciation made theexport relatively cheaper and the import relatively more expensive.

Answer 6

Chapter 19, Problem 1QFT

To determine

Concept Introduction:

Abenomics:

In Japan, when Mr. S became the prime minister, the country was going through a negative inflation. He followed the ease of monetary policy.

The bank of Japan ensured that it will do everything to bring back the inflation to 2%. All the economic policies taken by Mr. Sare referred as Abenomics.

Appreciation of Currency:

It is referred as the rise in the value of a currency in comparison to other currencies.

Consider a situation in which the value of one dollar is equal to INR 50. When it becomes equal to INR 60, it means the dollar has appreciated in comparison to INR.

Depreciation of Currency:

It is referred as the reduction in the value of a currency in comparison to other currencies. Consider a situation in which value of one dollar is equal to INR 50. When it becomes equal to INR 40, it means the dollar has depreciated in comparison to INR.

To explain: Reason for Abenomics resulting in a weaker yen.

Expert Solution & Answer

Explanation of Solution

Ease of monetary policy in Abenomics weakens the yen.

Due to quantitative easing policy followed by Mr. S, the money supply increased in the market which led to a lower interest rate.

Low interest rate led to a weakening of the financial account. It means there is a capital outflow. The demand for yen in the exchange rate market decreased, as a result,the price of yen decreased which is known as a depreciation of currency.

Depreciation made theexport relatively cheaper and the import relatively more expensive.

Answer 7

Chapter 19, Problem 1QFT

To determine

Concept Introduction:

Abenomics:

In Japan, when Mr. S became the prime minister, the country was going through a negative inflation. He followed the ease of monetary policy.

The bank of Japan ensured that it will do everything to bring back the inflation to 2%. All the economic policies taken by Mr. Sare referred as Abenomics.

Appreciation of Currency:

It is referred as the rise in the value of a currency in comparison to other currencies.

Consider a situation in which the value of one dollar is equal to INR 50. When it becomes equal to INR 60, it means the dollar has appreciated in comparison to INR.

Depreciation of Currency:

It is referred as the reduction in the value of a currency in comparison to other currencies. Consider a situation in which value of one dollar is equal to INR 50. When it becomes equal to INR 40, it means the dollar has depreciated in comparison to INR.

To explain: Reason for Abenomics resulting in a weaker yen.

Answer 8

Expert Solution & Answer

Explanation of Solution

Ease of monetary policy in Abenomics weakens the yen.

Due to quantitative easing policy followed by Mr. S, the money supply increased in the market which led to a lower interest rate.

Low interest rate led to a weakening of the financial account. It means there is a capital outflow. The demand for yen in the exchange rate market decreased, as a result,the price of yen decreased which is known as a depreciation of currency.