Assume the Exchange Rate Between the Dollar and Yen Is

Multiple Choice

Assume the exchange rate between the dollar and yen is ¥80= $1. Suppose that the exchange rate changes to ¥75 = $1. As a result of the change, there will be:

A) more Japanese goods sold in Australia and less Australian goods sold in Japan.
B) less Japanese goods sold in Australia and more Australian goods sold in Japan.
C) more Japanese goods sold in Australia and the same amount of Australian goods sold in Japan.
D) the same number of Japanese goods sold in Australia and less Australian goods sold in Japan.