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Suppose a U

Question 21

Multiple Choice

Suppose a U.S.-made machine costs $500 and the exchange rate was 100 yen = $1 yesterday. Today the exchange rate is 90 yen = $1. You know then that the


A) machine would now cost more dollars
B) machine would now cost the Japanese firm less yen
C) machine would now cost less dollars
D) machine would now cost the Japanese firm more yen
E) yen has depreciated in value

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