Suppose the Exchange Rate Between the Canadian Dollar and the Japanese

question 19

Multiple Choice

Suppose the exchange rate between the Canadian dollar and the Japanese yen was $1 = 220 yen in 2012.,In 2014, the exchange rate was $1 = 100 yen.Refer to the above information.Which one of the following might be a plausible explanation for the change in the dollar-yen exchange rate in 2014?

• A)During the period, Japan exported more to Canada than it imported from Canada.
• B)Japan increased its purchases from Canada during the period.
• C)Japan's growth of national income was more rapid than that of the Canadian economy during the period.
• D)Japan's government devalued the yen during the period.

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