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Suppose the U.S.price level rises 25 percent at a time when Japan experiences stable prices.As a result,the U.S.demand for Japanese goods will __________,and the Japanese demand for U.S.goods will __________; in turn,this will increase the demand for Japanese yen and decrease the supply of Japanese yen; in turn,the dollar will depreciate and the yen will appreciate.

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Definitions:

Public Offerings

The process by which a company sells its shares to the public for the first time through a stock exchange.

Partnership

A legal form of business operation between two or more individuals who share management and profits.

Sole Proprietorship

A business structure where a single individual owns, manages, and is responsible for all aspects of the business, including its debts.

Closed Receivership

A legal process where a receiver is appointed to manage the affairs, assets, and liabilities of a distressed or insolvent company until a resolution is found.

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