Abenomics: In Japan when Mr. S became the prime minister the country was going through negative inflation. He followed 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. S are referred to as Abenomics. Appreciation of Currency: It is referred to as the rise in the value of 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 60, it means dollar has appreciated in comparison to INR. Depreciation of Currency: It is referred to as the reduction in the value of 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 dollar has depreciated in comparison to INR.

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Chapter 34, Problem 3BCQ

To determine

Concept Introduction:

Abenomics: In Japan when Mr. S became the prime minister the country was going through negative inflation. He followed 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. S are referred to as Abenomics.

Appreciation of Currency: It is referred to as the rise in the value of 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 60, it means dollar has appreciated in comparison to INR.

Depreciation of Currency: It is referred to as the reduction in the value of 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 dollar has depreciated in comparison to INR.

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