Figure 20.8 below shows 10-year bond yields for Japan and the United States between 2006 and 2015. Given the data, what does the short-run nominal exchange rates model suggest should happen to the Japanese yen-U.S. dollar exchange rate? What other factor(s) might affect the exchange rate other than bond yields?Figure 20.8: Japanese and U.S. 10-Year Bond Yields

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The Answer of Figure 20.8 below shows 10-year bond yields for Japan and the United States between 2006 and 2015. Given the data, what does the short-run nominal exchange rates model suggest should happen to the Japanese yen-U.S. dollar exchange rate? What other factor(s) might affect the exchange rate other than bond yields?Figure 20.8: Japanese and U.S. 10-Year Bond Yields

Figure 208 Below Shows 10-Year Bond Yields for Japan and the the United