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.

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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.

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Students have asked these similar questions

Tasks Exercise 1 Assess the following functions: 1. f(x)= x2+6x+2 2.f '(x)=10x-2x2+5 a. Find the stationary points. (5 marks) b. Determine whether the stationary point is a maximum or minimum. (5 marks) c. Draw the corresponding curves (5 marks)

Problem 2: The sales data over the last 10 years for the Acme Hardware Store are as follows: 2003 $230,000 2008 $526,000 2004 276,000 2009 605,000 2005 328,000 2010 690,000 2006 388,000 2011 779,000 2007 453,000 2012 873,000 1. Calculate the compound growth rate for the period of 2003 to 2012. 2. Based on your answer to part a, forecast sales for both 2013 and 2014. 3. Now calculate the compound growth rate for the period of 2007 to 2012. 1. Based on your answer to part e, forecast sales for both 2013 and 2014. 5. What is the major reason for the differences in your answers to parts b and d? If you were to make your own projections, what would you forecast? (Drawing a graph is very helpful.)

Exercise 4A firm has the following average cost: AC = 200 + 2Q – 36 Q Find the stationary point and determine if it is a maximum or a minimum.b. Find the marginal cost function.

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.

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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.

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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.

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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.