Suppose the Exchange Rate Between the US and Japan Changed

question 140

Multiple Choice

Suppose the exchange rate between the US and Japan changed from $1 = 100 yen to $1 = 90 yen. In this scenario, the yen _______ and the US dollar _______.

• A) depreciated, depreciated
• B) depreciated, appreciated
• C) appreciated, depreciated
• D) appreciated, appreciated

---

Definitions:

Short-termism

The concentration on short-term projects or objectives for immediate profit at the expense of long-term security.

Resource Constraints

Limits on the availability of factors of production that reduce a company’s ability to produce goods and services.

Institutional Investors

Organizations that invest large amounts of money on behalf of their members, including pension funds, insurance companies, and mutual funds.

Sustainability

A way of doing business that supports the long-term ecological balance of the environment.