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If,in Retaliation for "Unfair" Trade Practices,Congress Imposes a 30 Percent

Question 74

Multiple Choice

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


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

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