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If the US Dollar Appreciates 10% Against the Japanese Yen

Question 38

Multiple Choice

If the US dollar appreciates 10% against the Japanese yen and at the same time depreciates 10% against the British pound sterling,then holding all else constant,in nominal terms


A) the yen-pound exchange rate remains approximately constant
B) the yen appreciates about ten percent against the pound sterling
C) the yen depreciates about twenty percent against the pound sterling
D) US goods become 10% less expensive in Japan
E) British exports become about 20% less expensive to the Japanese

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