Assume that the United States experiences a significant incr…

Assume that the United States experiences a significant increase in income, while Japan’s income remains steady. This event should place ____ pressure on the value of the Japanese yen, other things being equal. (Assume that other factors are not affected.)

Which of the following statements are correct?1) A firm that…

Which of the following statements are correct?1) A firm that will buy Swiss francs in the future wants the value of the franc to decrease before they have to buy francs. Therefore, the firm is long the Swiss franc since the firm will profit if the franc declines in value.2) Suppose a firm finds itself short the euro through past transactions. To hedge this risk, the firm could sell the currency forward.