(Solved):   Consider two countries, the United States and Japan, that trade with each other. Suppose t ...

 

Consider two countries, the United States and Japan, that trade with each other. Suppose that the U.S. government stops imposing an import tariff on Japanese goods, while there are no changes in Japan's international policies. The following graph shows the supply and demand for the Japanese yen in the United States before the new import tariff. The vertical axis is the exchange rate of the yen in terms of the dollar, and the horizontal axis is the quantity of yen. Show how the change in the trade barrier affects the equilibrium exchange rate by shifting one or both of the curves on the graph. Note: Select and drag one or both of the curves to the desired position. Curves will snap into position, so if you try to move a curve and it snaps back to its original position, just drag it a little farther. As a result of the new import tariff, the U.S. dollar