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Real exchange rate

A decline in the real USDJPY exchange rate most likely:

 

Increases a U.S. investor’s purchasing power relative to a Japanese investor’s.

 

Increases a Japanese investor’s purchasing power relative to a U.S. investor’s.

 

Increases the JPY‐denominated value of a Japanese investor’s investments in the United States.

 You Answered Correctly!

A decline in the USDJPY real exchange rate means that it now costs a Japanese investor less in real terms to buy U.S. goods. Therefore, in relative terms, the Japanese investor’s purchasing power has increased.

A decrease in the USDJPY nominal exchange rate decreases the JPY‐denominated value of a Japanese investor’s investments in the United States.

??????

In my opinoin second answer is right one.

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ruslanatagulyan wrote:

A decline in the real USDJPY exchange rate most likely:

 

Increases a U.S. investor’s purchasing power relative to a Japanese investor’s.

 

Increases a Japanese investor’s purchasing power relative to a U.S. investor’s.

 

Increases the JPY‐denominated value of a Japanese investor’s investments in the United States.

 You Answered Correctly!

A decline in the USDJPY real exchange rate means that it now costs a Japanese investor less in real terms to buy U.S. goods. Therefore, in relative terms, the Japanese investor’s purchasing power has increased.

A decrease in the USDJPY nominal exchange rate decreases the JPY‐denominated value of a Japanese investor’s investments in the United States.

??????

In my opinoin second answer is right one.

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