Under a Fixed Exchange Rate System, an Increase in Japanese

question 113

Multiple Choice

Under a fixed exchange rate system, an increase in Japanese demand for U.S.agricultural goods would

• A)cause the U.S.balance of trade to worsen
• B)increase the supply of yen relative to the dollar
• C)decrease Japanese demand for dollars
• D)cause the yen to appreciate
• E)cause an immediate revaluation of the yen

---

Definitions:

1790s

A decade marked by significant political and social change around the world, including the French Revolution and the early years of the United States under its new constitution.

Alexander Hamilton

A Founding Father of the United States, first Secretary of the Treasury, and key author of the Federalist Papers.

Financial Plans

Strategic approaches to managing finances that may include budgeting, investment, savings, and other financial goals.

Subsidies

Financial support provided by governments to individuals, businesses, or institutions to support economic activities considered beneficial.