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Custom Basis

Using data from the St. Louis Federal Reserve

(FRED) (http://research.stlouisfed.org/fred2/),

analyze foreign exchange rates.

a. Find the two most recent values from FRED

for the Japan/U.S. Foreign Exchange Rate

(DEXJPUS) and the U.S. Imports of Goods

from Japan, Custom Basis (IMPJP).

b. Given the change in the exchange rate

between the two periods, explain if the U.S.

imports from Japan change in the direction

that economic theory would predict.

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