Under a Floating Exchange Rate System, Everything Remaining Constant, an Increase

Multiple Choice

Under a floating exchange rate system, everything remaining constant, an increase in European exports to Japan is most likely to result in:

A) a decrease in the demand for euro in the foreign exchange market.
B) a decrease in the supply of euro in the foreign exchange market.
C) an appreciation of the Japanese yen vis-à-vis the euro.
D) an appreciation of the euro vis-à-vis the Japanese yen.