Suppose the Real Exchange Rate of 105 Japanese Yen to the Dollar

question 186

Multiple Choice

Suppose the real exchange rate of 105 Japanese yen to the dollar moves to 115 yen to the dollar.The dollar has _________________,making Japanese goods __________ expensive for Americans.

• A) appreciated; less
• B) appreciated; more
• C) depreciated; less
• D) depreciated; more

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Definitions:

Gini Coefficient

A measure of income distribution within a population, ranging from 0 (perfect equality) to 1 (perfect inequality).

Wealth Distribution

The manner in which wealth is divided among individuals or groups within a society.

Income Level

A measure of the amount of money earned by an individual or household, often used to identify economic status or class.

General Price

The typical or average cost of goods and services in a market, not specific to any brand or quality.