Under a System of Floating Exchange Rates, Other Things Equal

Multiple Choice

Under a system of floating exchange rates, other things equal, a U.S.trade deficit with Japan will cause

A) a flow of gold from the United States to Japan.
B) the U.S. government to ration yen to U.S. importers.
C) an increase in the dollar price of yen.
D) a decrease in the dollar price of yen.