-The Table Above Gives the Supply and Demand Schedules of
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question 233

Multiple Choice

$$\begin{array} { | l | l | l | } \hline \begin{array} { l } \text { Exch ange rate } \\\text { (yen per } \\\text { dollar) }\end{array} & \begin{array} { l } \text { Quantity of } \\\text { dollars } \\\text { demanded } \\\text { (billions) }\end{array} & \begin{array} { l } \text { Quantity of } \\\text { dollars } \\\text { demanded } \\\text { (billions) }\end{array} \\\hline 180 & 200 & 230 \\\hline 160 & 220 & 220 \\\hline 140 & 240 & 210 \\\hline 120 & 260 & 200 \\\hline 100 & 280 & 190 \\\hline\end{array}$$
-The table above gives the supply and demand schedules of U.S. dollars. Suppose that the Fed spends $30 billion and buys foreign securities. As a result, the U.S. dollar will__________ .

• A) depreciate by 140 yen per dollar
• B) depreciate by 20 yen per dollar
• C) appreciate by 180 yen per dollar
• D) appreciate by 20 yen per dollar

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Definitions:

Original Cost

The initial purchase price or investment made in acquiring an asset, including any related acquisition costs.

Leasehold

An interest in land or property which is held on a lease.

Lessor

A person or entity that rents out property or equipment to another party, known as the lessee, under the terms of a lease agreement.

Lessee

A person or entity that leases or rents property or equipment from another, known as the lessor.