Assume that Japan and South Korea have flexible exchange rates. Other things equal, if economic growth is more rapid in Japan than in South Korea,

Name: Assume that Japan and South Korea have flexible exchange rates. Other things equal, if economic growth is more rapid in Japan than in South Korea,
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If economic growth is more rapid in Japan, it could lead to an increase in imports, causing a higher demand for foreign currencies and a depreciation of the yen relative to the won.

Assume That Japan and South Korea Have Flexible Exchange Rates