Suppose the U

Multiple Choice

Suppose the U.S.price level rises 25 percent at a time when Japan experiences stable prices.As a result,the U.S.demand for Japanese goods will __________,and the Japanese demand for U.S.goods will __________; in turn,this will increase the demand for Japanese yen and decrease the supply of Japanese yen; in turn,the dollar will depreciate and the yen will appreciate.

A) rise; fall
B) fall; rise
C) rise; rise,too
D) fall; fall,too