Multiple Choice
Suppose that Japanese prices are falling and everything else has remained constant then:
A) the dollar/yen exchange rate will appreciate caused by a decrease in the demand for yen.
B) the dollar/yen exchange rate will depreciate caused by a decrease in the demand for yen.
C) the dollar/yen exchange rate will appreciate caused by a decrease in the supply of yen.
D) the dollar/yen exchange rate will depreciate caused by a decrease in the supply of yen.
E) the Japanese demand for dollars will increase.
Correct Answer:
Verified
Correct Answer:
Verified
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