Suppose the flow of capital from Japan into Australia begins to slow in the coming year. Show how this would affect the value of the dollar in the market for Australian dollars (with the exchange rate defined as yen per dollar). If this occurs, what is the effect on the balance of trade in goods and services?
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The Answer of Suppose the flow of capital from Japan into Australia begins to slow in the coming year. Show how this would affect the value of the dollar in the market for Australian dollars (with the exchange rate defined as yen per dollar). If this occurs, what is the effect on the balance of trade in goods and services?
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Suppose the Flow of Capital from Japan into Australia Begins