If, in Retaliation for "Unfair" Trade Practices, the Canadian Government

Multiple Choice

If, in retaliation for "unfair" trade practices, the Canadian government imposes a 30 percent tariff on Japanese DVD recorders, but at the same time, Canadian demand for Japanese goods increases, then, in the long run, ________, everything else held constant.

A) the Japanese yen should appreciate relative to the Canadian dollar
B) the Japanese yen should depreciate relative to the Canadian dollar
C) there is no effect on the Japanese yen relative to the Canadian dollar
D) the Japanese yen could appreciate, depreciate or remain constant relative to the Canadian dollar